The AS Curve Slopes Upward Because

question 72

Multiple Choice

The AS curve slopes upward because:

• A)firms generally sell their products at preset prices.
• B)relaxing the assumptions of the Keynesian model allows us to develop a more realistic model where firms no longer care about prices.
• C)many firms raise their prices when aggregate demand has increased.
• D)inflation is higher in goods-producing industries than service-producing industries.