The Short-Run Aggregate Supply Curve

question 113

Multiple Choice

The short-run aggregate supply curve:

• A)Becomes steeper the further into the future it goes and eventually becomes vertical.
• B)Becomes flatter the further into the future it goes and eventually becomes horizontal.
• C)Becomes steeper the further into the future it goes, but never becomes vertical.
• D)Becomes flatter the further into the future it goes, but never becomes horizontal.

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Definitions:

Price

The total money needed for acquiring a good, service, or asset.

Short Run

A period during which at least one of a firm's inputs is fixed, limiting its capacity to adjust to changes in demand.

TC

Total Costs, the sum of all costs incurred in the production of goods or services.

TR

Total Revenue; the total receipts from sales of goods or services provided by a company before any deductions are made.