In monetarist business cycle theory, the short-run aggregate supply curve?
مونیٹرسٹ کاروباری سائیکل تھیوری میں مختصر مدت کی مجموعی رسد وکر کی نوعیت کیا ہوتی ہے؟
- Has a negative slope
- Is horizontal
- Has a positive slope
- None of these
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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