The Short- Run Aggregate Supply Curve Is Upward Sloping Because

question 442

Multiple Choice

The short- run aggregate supply curve is upward sloping because in the short run the

• A) both the money wage rate and the price level change.
• B) neither the money wage rate nor the price level can change.
• C) price level changes but the money wage rate does not.
• D) money wage rate changes but the price level does not.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Quantity Demanded

The specific amount of a good or service that consumers are willing to purchase at a given price over a specific period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price, holding all else constant.

Equilibrium Quantity

The quantity of goods supplied that is equal to the quantity demanded at the market equilibrium price.