Which of the Following Explains Why Supply Curves Slope Upward

question 348

Multiple Choice

Which of the following explains why supply curves slope upward?

• A) prices and income
• B) increasing marginal cost
• C) resources and technology
• D) substitutes in production and complements in production

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Definitions:

Spending Multiplier

The ratio of a change in output (economic activity) to a change in spending, indicating the ripple effect of an initial expenditure through the economy.

Aggregate Demand Curve

A graphical representation of the total demand for goods and services in an economy at various price levels, holding all else constant.

Expansionary Gap

A situation where the actual output in an economy exceeds the potential output, leading to inflationary pressure.

Expansionary Gap

A situation in macroeconomics where a country's actual gross domestic product exceeds its potential GDP, leading to inflation.