The Aggregate Supply Curve Has Its Particular Shape Because of Which

question 50

Multiple Choice

The aggregate supply curve has its particular shape because of which of the following explanations?

• A) An increase in the nominal wage causes a decrease in the amount of output that firms are willing to produce.
• B) An increase in the aggregate price level will cause an increase in the interest rate and a decrease in output.
• C) An increase in output causes an increase in employment, a decrease in unemployment, an increase in the nominal wage and an increase in the price level.
• D) A decrease in output causes a decrease in employment, a decrease in unemployment, an increase in the nominal wage and an increase in the price level.
• E) A decrease in the aggregate price level causes a decrease in nominal money demand and a decrease in the interest rate.

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Definitions:

Consumer Goods

Products intended for final use by consumers rather than further manufacturing or processing.

Future Growth Rate

An estimate of how fast an economy, company, or investment is expected to grow in the future.

Division of Output

The allocation or distribution of the total goods and services produced among different sectors, markets, or consumers.

Marginal Benefits

The additional benefits received from consuming one more unit of a good or service.