In terms of aggregate supply, a period in which nominal wages and other resource prices are unresponsive to price-level changes is called the
A) long run.
B) short run.
C) immediate market period.
D) very long run.

Question

Quizplus · Accepted Answer

A period in which nominal wages and other resource prices are unresponsive to price-level changes is called the short run. In the short run, firms can adjust their production levels and prices but cannot adjust their fixed inputs or the wages they pay to workers.

In Terms of Aggregate Supply, a Period in Which Nominal