When prices rise but wages remain fixed in the short run

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When prices rise, but wages remain fixed in the short run? A) Firms face profit opportunities, because real wages fall. B) Firms reduce output, because the costs of their inputs increase. c) Firm’s profits decline, because they are unable to attract workers at the old wage. D) Firms' profits remain unchanged, because in the long run wages will rise to catch up with the increase in prices. The short-run aggregate supply curve illustrates? A) How output responds to changes in prices before all prices have adjusted. B) How output responds to changes in prices after all prices have adjusted. C) How producers raise prices in response to increases in their costs. D) How consumers reduce spending in response to increases in prices.

Reference no: EM13994545

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