Which of the following statements is false?
A) An increase in wage rates causes producers to move up the SRAS curve.
B) An increase in the price level causes producers to move up the SRAS curve.
C) The SRAS curve is upward sloping.
D) The long-run aggregate supply curve is vertical.

Question

Quizplus · Accepted Answer

An increase in wage rates will shift the SRAS curve in the opposite direction, meaning it will move down the SRAS curve. This is because higher wage rates increase production costs for firms, causing a decrease in the quantity supplied at each price level.

Which of the Following Statements Is False