An Increase in the Price Level Is Likely to Increase

question 157

Multiple Choice

An increase in the price level is likely to increase the aggregate amount of output supplied in the short run because

• A) interest rate is high in the short-run.
• B) wages are sticky in the short-run.
• C) wages change in the short-run.
• D) the aggregate supply curve is vertical in the short-run.

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Definitions:

Par Common Stock

The face value of a share of stock as stated in the corporate charter.

Cost Method

An accounting method used to value inventory or investments at their original purchase cost.

Treasury Stock

Shares initially offered by a company and then purchased again by that company, lowering the volume of shares that are actively traded on the market.

Par Common Stock

The face value of common stock as stated in the corporate charter, which has no direct correlation to the market value.