2008 DSE AS-AD doubt

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2008 DSE AS-AD doubt

knowpraveen
Qn No. 46.

 
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Re: 2008 DSE AS-AD doubt

Ansh malhotra
 I also faced problem in this question because in short run wages are rigid.
But question says according to schedules given in question, our
Wages and labour seems flexible like question 42 and 44. So aggregate supply may be vertical
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Re: 2008 DSE AS-AD doubt

knowpraveen
In that case, if wages and prices are assumed to change and adjust accordingly it's a vertical line for sure. But, is it a kinda subtle approach, I mean the way they have asked the question? Have they given a cue somewhere in the question?
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Re: 2008 DSE AS-AD doubt

Ansh malhotra
In question 46 they have specifically mentioned that given the labour supply and labour demand schedule derived above do you any substance in answer
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Re: 2008 DSE AS-AD doubt

Ansh malhotra
In reply to this post by knowpraveen
Please help me in question 16 of this paper