In the Aggregate Supply Relation, an Increase in Current Output

question 6

Multiple Choice

In the aggregate supply relation, an increase in current output causes:

• A) an increase in the expected price level and an upward shift of the AS curve.
• B) a shift of the aggregate supply curve.
• C) a change in the expected price level this year.
• D) an increase in the current price level.
• E) an increase in the markup over labour costs.

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Definitions:

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The method through which humans take in information from the environment, interpret it, and make decisions based on it.

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The electrical and chemical processes in the nervous system that allow neurons to communicate and perform their functions.

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