Part 1 - Check Your Understanding- Answer the questions assuming an upward sloping SRAS. 1. Explain why an increase in price level results in an increase in the quantity supplied of goods and services in the short-run. 2. If the size of the labor force is constant, what will likely happen to unemployment as price level increases in the short-run? Explain. 3. Explain why wages are more rigid (or sticky) when price level falls rather than when price level increases