In the Upward-Sloping Segment of the Aggregate Supply Curve

question 30

Multiple Choice

In the upward-sloping segment of the aggregate supply curve,

• A) increases in output are linked to decreases in the price level.
• B) increasing prices drag down resource costs.
• C) producers can hire more workers without having to raise the wage rate.
• D) the economy can increase aggregate supply without prices going up.
• E) firms are willing to pay higher wages to get more labor.

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Definitions:

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services by a firm.

Widgets

A generic term often used to describe an unspecified or hypothetical manufactured product.

Labor

The use of mental and physical capabilities in the creation of products and services.

Efficient

Describes a system or process that achieves maximum productivity with minimum wasted effort or expense.