The Short- Run Aggregate Supply Curve Is Upward- Sloping Because

question 61

Multiple Choice

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

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

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Definitions:

Full Capacity

The maximum level of output that a company can sustain within a specific period under normal operating conditions.

Sales Level

The total volume or amount of sales achieved by a business within a specified time period.

Dividend Payout Ratio

The portion of a company's earnings that is paid out to shareholders as dividends, usually expressed as a percentage.

Sustainable Rate

The maximum rate at which a company can grow its earnings without needing additional equity financing while maintaining a constant debt-to-equity ratio.