The AS Curve Slopes Upward Because

question 101

Multiple Choice

The AS curve slopes upward because:

• A)all firms will increase their prices in response to an increase in aggregate demand, but some will increase their output and others will decrease their output.
• B)all firms will increase their prices, but not their output in response to an increase in aggregate demand.
• C)some firms will increase their prices and their output in response to an increase in aggregate demand.
• D)all firms will increase their prices and their output in response to an increase in aggregate demanD.

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Definitions:

Parent Company

A company that holds a controlling interest in one or more subsidiaries, exerting control and influence over their operations.

Subsidiary Company

A company that is completely or partially owned and wholly controlled by another company, which is referred to as the parent company.

Cost Method

An accounting method for investments where the investment is recorded at the purchase cost, without recognizing subsequent changes in market value.

Semiannual Receipt

Payments or incomes that are received twice a year.