Notes on SRAS

Nominal wages-it is the amount of money received by a worker per unit of time.

Real wages-it is the amount of goods and services a worker can purchase with their nominal wages. The purchasing power of your nominal wage

Sticky Wages-Nominal wage level is set according to an initial price level and it does not vary due to labor contracts or other restrictions.

Keynesian Range- Recession, Price is fixed, wages are fixed, the employment level is flexible, and output depends upon changes int he employment level.

Intermediate Range- Price is flexible, wages are fixed, employment level is flexible, and output depends upon changes in price level and employment level.

Classical Range- Inflation, Price is flexible, wages are flexible, employment level is fixed, output is independent in the changes of the price level.