a) How do menu costs and factor prices play a role in making the short run aggregate supply curve upward sloping?
b) How does a supply shock influence the short run aggregate supply curve?
c) What is an expansionary gap?
D) What are the likely consequences of an expansionary gap?

Answer rating: 100% (QA)

a Menu costs and factor prices play a role in making the shortrun aggregate supply SRAS curve upward sloping by influencing firms production decisions Menu costs refer to the costs incurred by firms w... View the full answer