how-does-the-sticky-wage-theory-explain-the-upward-slope-of-the-short-run-aggreg

Question

How does the sticky wage theory explain the upward slope of the short run aggregate supply curve?

Accepted Answer

Wages are slow to adjust, leading to higher profits and increased supply when prices rise.

Answer

Wages are irrelevant to the supply curve slope.

Answer

Wages are fixed, leading to decreased supply when prices rise.

Answer

Wages adjust quickly, leading to decreased supply when prices rise.