Which of the Following Statements Is True

question 67

Multiple Choice

Which of the following statements is true?

• A) The short-run aggregate supply curve is downsloping.
• B) The short-run aggregate supply curve is vertical.
• C) The long-run aggregate supply curve is vertical.
• D) The long-run aggregate supply curve is upsloping.

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Definitions:

Production Function

An economic model that describes the relationship between input resources and the output of goods for a specific period.

Short-Run Cost Function

A representation of how total production costs change with output levels in the short term, when some factors are fixed.

Quasi-Fixed Costs

Costs that are not directly variable with the level of output but can change over time with scale of operations, such as salaries for permanent staff.

Positive Output

Production of goods or services in a quantity that exceeds zero.