The Aggregate Supply Curve

question 76

Multiple Choice

The aggregate supply curve

• A) is explained by the interest rate, real-balances, and foreign purchases effects.
• B) gets steeper as the economy moves from the top of the curve to the bottom of the curve.
• C) shows the various amounts of real output that businesses will produce at each price level.
• D) is downsloping because real purchasing power increases as the price level falls.

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Small Group Activities

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Learning Transfer System Inventory (LTSI)

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