In the Short Run, the Aggregate Supply Curve Has a Positive

question 89

Multiple Choice

In the short run, the aggregate supply curve has a positive slope because, as the price level rises, producers can

• A)produce the same output, but at higher prices.
• B)accumulate inventories.
• C)produce less in response to falling profits.
• D)be compensated for the extra costs incurred to produce more output.
• E)experience rising factor prices.

---

Definitions:

Four Elements

The Four Elements traditionally refer to earth, water, air, and fire, considered as the fundamental building blocks of nature in ancient and medieval philosophy.

Core Competencies

The unique capabilities and resources a company possesses that give it a competitive advantage in its field or market.

Low-Cost Leadership

A strategy where a company becomes the lowest cost producer in its industry, offering products or services at the lowest price point to gain market share.

Franz Colruyt

A Belgian entrepreneur known for founding the Colruyt Group, a major retail corporation.