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    5. Under nominal wage rigidity, the short run aggregate supply schedule will be 

    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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