AP Macroeconomics 3.3.2: Sticky Prices
Explain how sticky wages and prices make aggregate-demand changes affect short-run output and unemployment.
- Syllabus
- Effective Fall 2025
- Course
- AP Macroeconomics
MOD-2.D—Explain (using graphs as appropriate) how movement along the SRAS curve implies a relationship between the price level (and… question 1
[Maximum number: 1]
A reduction in aggregate demand will necessarily cause an increase in unemployment in the short run when
A
nominal wages or prices are sticky downward
B
nominal wages and prices are flexible
C
the aggregate supply curve is vertical
D
the money supply grows at a constant rate
E
imports exceed exports
A
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