The Short-Run Aggregate Supply Curve Is Positively Sloped Because

question 13

Multiple Choice

The short-run aggregate supply curve is positively sloped because:

• A) wages and other costs of production respond immediately to changes in prices.
• B) profit is lower when prices increase, so output decreases.
• C) workers are willing to work for lower wages rather than be laid off.
• D) higher prices lead to higher profit and higher output.

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Definitions:

Specialization

The process of focusing efforts on a specific activity, product, or service to gain efficiency or quality improvements.

Economically Beneficial

Describes actions, policies, or activities that result in a positive impact on economic well-being, efficiency, or growth.

Fixed Amounts

Quantities that remain constant and do not change over time, regardless of any external conditions or variables.

Consumer Desire

The willingness and preference of consumers to purchase goods and services.