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      Question

      Under nominal wage rigidity, the short run

      aggregate supply schedule will be 
      A Vertical Correct Answer Incorrect Answer
      B Horizontal Correct Answer Incorrect Answer
      C Upward sloping Correct Answer Incorrect Answer
      D Downward sloping Correct Answer Incorrect Answer
      E None Correct Answer Incorrect Answer

      Solution

      Aggregate supply slopes up in the short-run because at least one price is inflexible.

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