The Aggregate Supply Curve Is Upward Sloping _____

question 1

Multiple Choice

The aggregate supply curve is upward sloping _____.

• A) in the long run
• B) in the short run
• C) when the marginal cost of production is high
• D) when wages rise faster than inflation

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Definitions:

Money Supply Growth

The rate at which the amount of money available in an economy increases over a specific period of time.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a commodity or service, potentially leading to higher prices and lower quantity available.

Money Supply

The aggregate value of all monetary assets in an economy during a specific period.