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Just as the Aggregate-Supply Curve Slopes Upward Only in the Short

question 24

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Just as the aggregate-supply curve slopes upward only in the short run, the trade-off between inflation and unemployment holds only in the short run.


Definitions:

Marginal Revenue

The additional income earned from the sale of one more unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Total Revenue

Total Revenue is the total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product.

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