Question: Hi, can you please help me with this question? Which of the following statements about the price-setting curve is correct? a. The price-setting curve depicts

Hi, can you please help me with this question?

Which of the following statements about the price-setting curve is correct?

a.

The price-setting curve depicts the firms' profit-maximising price level for different levels of economy-wide employment.

b.

Firms must pay a higher real wage when the employment rate is higher. Therefore, the price-setting curve is upward-sloping.

c.

At points below the price-setting curve, the firms are setting prices too high compared to their profit-maximising level.

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