(Short-Run Aggregate Supply) In interpreting the short-run aggregate supply, what dos the adjective short-run?? Explain the role of the labor s along along the SRAS curve.<br> The short run is the period time who the prices of some resources, the sly labor, are fixed by the implicit or explicit contracts. S and thoseewho who supply resources have the time to adjust to an unexpected change in the price level.<br>Labor contracts salys sitto more rhoi srally than output prices. When prices, for example, some wages are fixed by contract. Thus, firms' revenues will will rise more more rapid than costs, and and and production production leads to greater profits. Actual price price price to real real output - and the the aggregate supply curve slopes upward. ...
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