Consider the three theories of 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).

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

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

According to the misperceptions theory, the economy is in a recession when the price level is below what is expected.

Explanation:

The above mentioned are the three theories of the upward slope of the short-run aggregate-supply curve.

answer; intensive use of a sales force and is relatively costly;

answer; lags, push the econ below the natural level of output;