In monetarist business cycle theory, the short-run aggregate supply curve?
General Knowledge / Economics MCQs — Multiple-choice practice
مونیٹرسٹ کاروباری سائیکل تھیوری میں مختصر مدت کی مجموعی رسد وکر کی نوعیت کیا ہوتی ہے؟
- A. Has a positive slope
- B. Is horizontal
- C. None of these
- D. Has a negative slope
Correct answer
Has a positive slope
Explanation
Explanation The New Monetarist Business Cycle Theory explains output and price movements using monetary frictions. In the short run, prices and wages do not adjust instantly. Firms increase output when demand rises. This creates a positive relationship between price level and output. So the short-run aggregate supply curve is upward sloping. Last verified on 22-04-2026
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