If the Prices of Inputs Change, What Will Happen to the Aggregate

question 61

Multiple Choice

If the prices of inputs change, what will happen to the aggregate supply curve?

• A)The aggregate supply curve does not move, but the economy moves along the curve.
• B)The aggregate supply curve depends on whether the input prices rise or fall.
• C)The curve will become flatter or steeper depending on whether the input prices rise or fall.
• D)The aggregate supply curve shifts inward or outward depending on whether the input prices rise or fall.

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Definitions:

Values

Core beliefs or principles that guide an individual's behavior and decision-making, reflecting what is important to them.

Knowledge

Familiarity, awareness, or understanding of someone or something, such as facts, information, descriptions, or skills, which is acquired through experience or education.

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or social group.

Society's Values

The shared beliefs, norms, and mores that are important to a group or society and influence behavior and decision-making.