The Short- Run Aggregate Supply Curve Is Upward Sloping Because

question 415

Multiple Choice

The short- run aggregate supply curve is upward sloping because

• A) capital is scarce.
• B) potential GDP is less than real GDP when the price level falls.
• C) firms need to receive higher prices to cover the higher costs of producing increasing levels of output.
• D) technology is scarce.

---

Definitions:

Tributaries

Smaller rivers or streams that flow into a larger river or lake, contributing to its overall water volume.

Sediment

Particulate organic and inorganic material that settles at the bottom of a liquid, often transported by water, wind, or ice.

Discharge

The flow rate of water from a given source, such as a river or aquifer, typically measured in volume per unit time.

Low-Gradient Stream

A stream with a gentle slope that typically has slower water velocity and can form wide meanders, floodplains, and deposits of sediments along its course.