FIGURE 8.12 variable-Money-wage Cases Keynesian Aggregate Supply Curves for the Fixed- and The aggregate supply schedule in part c for the case when the money wage is variable ly(W variable)] is steeper than when the money wage is fixed ly(W W)] because the increase in employment(part a) with a rise in price and therefore the increase in output(part b) are smaller when the money wage variable than when it is fixed. In essence, this outcome follows because the rise in the money wage the variable-wage case dampens the effect on employment and output from increase the in price level.