6) The short-run aggregate supply curve (AS) is upward sloping because: A) an increase in output causes an increase in employment, a reduction in unemployment, an increase in the nominal wage and an increase in the price level. B) a reduction in the aggregate price level causes a reduction in nominal money demand and a reduction in the interest rate. C)a reduction in the aggregate price level (P) will cause a reduction in the interest rate and an increase in output. D) an increase in the aggregate price level will cause an increase in the interest rate and a reduction in output. E) an increase in the nominal wage causes a reduction in the amount of output that firms are willing to produce.

6) The short-run aggregate supply curve (AS) is upward sloping because: A) an increase in output causes an increase in employment, a reduction in unemployment, an increase in the nominal wage and an increase in the price level. B) a reduction in the aggregate price level causes a reduction in nominal money demand and a reduction in the interest rate. C)a reduction in the aggregate price level (P) will cause a reduction in the interest rate and an increase in output. D) an increase in the aggregate price level will cause an increase in the interest rate and a reduction in output. E) an increase in the nominal wage causes a reduction in the amount of output that firms are willing to produce.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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