Which of the Following Explains Why the Aggregate Supply Curve

question 57

Multiple Choice

Which of the following explains why the aggregate supply curve is generally upward sloping?

• A) When real output decreases, per-unit production costs tend to increase.
• B) When aggregate demand shifts rightward, aggregate supply also always shifts rightward as well.
• C) When real output increases, per-unit production costs decrease.
• D) When real output increases, per-unit production costs increase as well.

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Definitions:

Vision

The ability to think about or plan the future with imagination or wisdom.

Company's Actions

Decisions and measures taken by a company's management and board of directors which impact its operations, performance, and strategy.

Competitors

Entities or individuals that compete within the same market, offering similar products or services to the same customer base.