Question

The short-run aggregate supply curve would be vertical if

(A) nominal wages adjust immediately to changes in the price level
(B) nominal wages adjust slowly when there is unemployment
(C) both nominal wages and prices adjust slowly to changes in aggregate demand
(D) the spending multiplier is very low
(E) investment demand is very responsive to
changes in interest rates

Answer 1

Wages and other costs fully adjust to changes in prices in the long run.

Step-by-step explanation: