60 391
Assignments Done
98,1%
Successfully Done
In April 2018

Answer to Question #57010 in Macroeconomics for HS

Question #57010
I'm a little bit confused. Isn't the short run defined as the period during which factor prices are fixed? Then how come that wages (a factor of production) will change in the short run and cause shifts of the SRAS curve?
Expert's answer
In the short run some factor prices may be fixed, but not all of them. Usually in the short run capital inputs are fixed, but labor is variable and can be changed. And only in the long run all factors of production are variable. That's why wages as a factor of production will change in the short run and cause shifts of the SRAS curve.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions