The Upward Slope of the Short-Run Aggregate Supply Curve Is

question 120

Multiple Choice

The upward slope of the short-run aggregate supply curve is based on the assumption that

• A) wages and other resource prices do not respond to price level changes.
• B) wages and other resource prices do respond to price level changes.
• C) prices of outputs do not respond to price level changes.
• D) prices of inputs are flexible, while prices of outputs are fixed.

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Definitions:

Suggest Changes

The act of proposing adjustments or modifications to ideas, processes, or behaviors to improve or resolve a situation.

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that is often depicted as a pyramid with physiological needs at the base, ascending through safety, love/belonging, esteem, to self-actualization at the top.

Physiological Needs

The most basic of Maslow’s hierarchy of needs having to do with the satisfaction of physical needs, including food and shelter.

Safety and Security

Basic human needs that involve being free from harm and threat, including protection of one's health and property.