The aggregate supply schedule is steeper where the money wage is more
The aggregate supply schedule is steeper where the money wage is more variable than where the money wage is fixed because the rise in the money wage in the
a. fixed-wage case dampens the effect on employment and output from an increase in the price level.
b. variable-wage case dampens the effect on employment and output from an increase in the price level.
c. variable-wage case heightens the effect on employment and output from an increase in the price level.
d. all of the above
ANSWER
B
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