Which of the following is NOT a reason that the short-run aggregate supply curve has a positive slope?
A) sticky wages
B) money neutrality
C) sticky prices
D) the money illusion

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve has a positive slope due to reasons such as sticky wages, sticky prices, and the money illusion, which all relate to how prices and wages adjust in the short term. Money neutrality, which suggests that changes in the money supply only affect nominal variables and not real variables in the long run, is not a reason for the positive slope of the short-run aggregate supply curve.

Which of the Following Is NOT a Reason That the Short-Run