An Increase in Short-Run Aggregate Supply Could Be the Result

question 122

Multiple Choice

An increase in short-run aggregate supply could be the result of a(n)

• A) increase in the general price level.
• B) negative supply shock.
• C) increase in the price of oil.
• D) increase in consumption spending.
• E) reduction in expected future prices.

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Definitions:

Profit-Maximizing

A strategy in which a firm seeks to achieve the highest possible profit from its operations, often by adjusting output or prices.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product or service.

Marginal Revenue

The additional revenue that a company generates from selling one more unit of a good or service.

Moustache Wax

A grooming product used to style and hold the moustache in place.