The Short-Run Aggregate Supply Curve Slopes Upward Because Of

question 251

Multiple Choice

The short-run aggregate supply curve slopes upward because of:

• A) wage and price stickiness.
• B) wage and price flexibility.
• C) increasing technology.
• D) a reduction in resource availability at higher price levels.

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Definitions:

Quantity Demanded

The specific amount of a good or service consumers are willing to buy at a given price point, holding all else constant.

Quantity Supplied

The total amount of a good that producers are willing to sell at a given price over a specific time period.

Shortage

A situation in which demand for a good or service exceeds the available supply at a specific price.

Supply

The total amount of a specific good or service available for purchase at any given price level in a given market.