Consider a closed economy with the following wage and price setting relations: Y = AN, W = Pt'F(u, z), P = (1 + p)W, Production Function Wage setting Price setting 1. Write down the AS curve which results from the above wage and price setting functions

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.