If the Prices of Inputs Changes, What Will Happen to the Aggregate

question 51

Multiple Choice

If the prices of inputs changes, what will happen to the aggregate supply curve?

• A)It does not move but the economy moves along the curve.
• B)It depends on whether the input prices rise or fall.
• C)The curve will become flatter or steeper depending on whether the input prices rise or fall.
• D)It shifts inward or outward depending on whether the input prices rise or fall.

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Definitions:

Reporting Period

The specific time span for which financial activities are recorded and reported in financial statements.

Monetary Items

Financial assets and liabilities that carry a fixed monetary value, such as cash, receivables, and payables.

Foreign Currency

Currency used in a country other than one’s own, requiring exchange rate conversion for transactions and financial reporting.

Closing Rate

The exchange rate used to convert foreign currency transactions and balances into the reporting currency of a company at the end of an accounting period.