The Aggregate Supply Curve (Short Run) Is Upsloping Because

question 187

Multiple Choice

The aggregate supply curve (short run) is upsloping because

• A) wages and other resource prices match changes in the price level.
• B) the price level is flexible upward but inflexible downward.
• C) per-unit production costs rise as the economy moves toward and beyond its full- employment real output.
• D) wages and other resource prices are flexible upward but inflexible downward.

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Definitions:

Net Income

The total amount of profits earned by a company after all expenses and taxes have been deducted from revenue.

Special Order

A one-time order that is not considered part of the company's normal ongoing operations, often requiring special pricing or terms.

Incremental Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.

Lost Sales

Potential sales that were not realized due to stockouts, capacity issues, or other factors that prevented the completion of a sale.