Question

QUESTION 53If the price level rises above what was expected and nominal wages are fixed, thena.production becomes less profitable so firms will hire fewer workers. b.production becomes more profitable so firms will hire more workers. c.production becomes less profitable so firms will hire more workers. d.production becomes more profitable so firms will hire fewer workers.

Answer 1

Answer: OPTION B Production becomes more profitable and firm will hire more workers

Explanation: the term Aggregate supply is used to define the amount of goods and services a company are determined to sell off at a given price level in an National economy.due to the fact that there is a general increment or increase in price level,and a fixed income for staff, producers will to make more goods becomes high or increases and so they then hire more capable hands (workers) due to the fact that sticky wages offer is better of.