Complete the statements about the following three theories


Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too_____ , thus labor demand is too______ .

According to the sticky-price theory, the economy is in a recession because______ .

According to the misperceptions theory, the economy is in a recession when the price level is_______ what was expected. (fill in the blanks).

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Business Economics: Complete the statements about the following three theories
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