If the SRAS curve is upward sloping then when when will the SRAS curve is horizontal ? , What are the different conditions for them ? Please review this question - economics.stackexchange.com/questions/20656/aggregate-supply-curve-in-nominal-wage-rigidity-and-real-wage-rigidity
It said that factor of production cost remain constant no matter how in much quantity an economy is producing. But at the same time you said one of the reason for rise in prices is the over time wages of worker. How come this makes sense?
It makes sense this way firms are paying overtime for overproduction in a limited time period definitely firm are paying higher wages as compared to normal work hours so the cost of production will rise. Even the factors of production cost remain constant but firms are adding extra hours of production which leads to extra wage cost. overtime wage rate and normal wage rate are not the same.
As wages cannot change in short run, why changes in wages can shift SRAS to left or right.
Nice
Pls sir kya hp Hindi m ye explan kr skta h
If the SRAS curve is upward sloping then when when will the SRAS curve is horizontal ? , What are the different conditions for them ?
Please review this question - economics.stackexchange.com/questions/20656/aggregate-supply-curve-in-nominal-wage-rigidity-and-real-wage-rigidity
It said that factor of production cost remain constant no matter how in much quantity an economy is producing. But at the same time you said one of the reason for rise in prices is the over time wages of worker. How come this makes sense?
It makes sense this way firms are paying overtime for overproduction in a limited time period definitely firm are paying higher wages as compared to normal work hours so the cost of production will rise. Even the factors of production cost remain constant but firms are adding extra hours of production which leads to extra wage cost.
overtime wage rate and normal wage rate are not the same.
surely if you're paying workers overtime, the price of labour does change...
price of labour itself doesn't change, just the quantity of it