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:

Promotion

Marketing strategies aimed at increasing the visibility, sales or acceptance of a product or service.

Monthly Compounded

The process of calculating interest each month and adding it to the total amount owed, thus earning interest on interest from the following month.

Semi-Annually Compounded

Describes the methodology of applying interest to a principal amount two times within a year.

Quarterly Payments

Payments made four times a year, typically for loans, mortgages, or other financial products.