An Increase in the Expected Price Level Shifts the Short-Run

question 47

True/False

An increase in the expected price level shifts the short-run aggregate supply curve to the right.

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Definitions:

Short Run

A period during which at least one of a firm's inputs is fixed, limiting its capacity to adjust to changes in demand.

TC

Total Costs, the sum of all costs incurred in the production of goods or services.

TR

Total Revenue; the total receipts from sales of goods or services provided by a company before any deductions are made.

TVC

Total Variable Cost; the total of all costs that vary with the level of output produced by a company.