If the Aggregate Supply Curve Is Steep

question 98

Multiple Choice

If the aggregate supply curve is steep,

• A)increased aggregate demand will not lead to higher prices.
• B)greater demand for labor will not cause significant wage increases.
• C)business firms are probably producing near capacity.
• D)All of these responses are correct.

---

Definitions:

Operating Activity

Activities that constitute the core business functions, generating revenue and incurring expenses through day-to-day operations.

Accounts Receivable

The total finances that are due to a company from its customers for goods or services that have already been delivered or utilized, but payment has not been received.

Accounts Receivable Turnover

A financial ratio indicating how efficiently a company collects cash from credit sales by measuring the number of times receivables are collected over a period.

Inventory Turnover

An index that reveals the number of times a business's stock is sold and restocked during a specific period, showcasing how efficiently inventory is managed.