Which of the Following Explains Why We Assume That the Economy's

question 2

Multiple Choice

Which of the following explains why we assume that the economy's aggregate supply (AS) curve has a positive slope?

• A)Inputs become more expensive at higher levels of output.
• B)Inputs become less expensive at higher levels of output.
• C)Firms' unit costs rise as output increases.
• D)Firms' unit costs fall as output increases.
• E)Aggregate demand increases at higher levels of national income.

---

Definitions:

Arbitration

Arbitration is a method of resolving disputes outside the courts, where an impartial third party, known as an arbitrator, makes a decision that's binding on the parties involved.

Binding Arbitration Clause

A contract provision mandating that all disputes arising under the contract must be settled by arbitration.

Disputes

Conflicts or arguments between parties that may require resolution through negotiation or legal means.

Contract

A legally binding agreement between two or more parties, enforceable by law.