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The Short-Run Aggregate Supply Curve Is Upward Sloping Because the Nominal

Question 62

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The short-run aggregate supply curve is upward sloping because the nominal wages are sticky. What is the difference between real and nominal wages? Why does stickiness in nominal wages lead to the upward-sloping short-run aggregate supply curve? Would the short-run aggregate supply curve be upward sloping when the real wage is sticky?

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The nominal wage refers to the amount of...

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