Consider the Economy's Aggregate Supply Curve

question 138

Multiple Choice

Consider the economy's aggregate supply curve.Other things being equal,firms' unit costs will tend to increase if

• A)there is a reduction in the price of oil.
• B)the government reduces payroll taxes.
• C)wage increases exceed productivity increases.
• D)wages rise.
• E)wage and price controls are in effect.

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Definitions:

Twitch

A quick, involuntary contraction of a muscle or group of muscles.

Elastic Components

Refers to parts of structures (such as in the lungs and arteries) that can stretch and recoil, contributing to their functionality.

Increased Tension

A situation where there is a rise in pressure or stress within a structure or system, such as in muscles or blood vessels.

Incomplete Tetanus

A muscular contraction characterized by rapid cycles of contraction with partial relaxation in between, due to stimuli occurring at a high frequency.