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The Short-Run Aggregate Supply Curve Has a Positive Slope, Showing

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The short-run aggregate supply curve has a positive slope, showing that increases in the price level will increase the quantity of aggregate output supplied by firms.


Definitions:

Annually

Occurring once every year; relating to a period or cycle of one year.

Compounded Annually

A technique for computing interest in which the interest accrued annually is compounded to the principal amount, resulting in a balance that not only expands but does so at an accelerating pace.

Simple Interest

A method to calculate interest where the interest payment is a fixed percentage of the principal amount that does not change over the life of the loan or investment.

Interest

Interest is the cost of borrowing money, expressed as a percentage of the borrowed sum, paid by the borrower to the lender for the use of the money over a specified period.

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