It Is Argued That Short-Run Aggregate Supply Curves Slope Upward

question 67

Multiple Choice

It is argued that short-run aggregate supply curves slope upward to the right because

• A) short-run price levels are inversely related to individual product prices.
• B) falling profits force firms to increase prices.
• C) in the short run, wages and raw material prices tend to rise less rapidly than product prices.
• D) as price rises, demand falls.
• E) increases in aggregate supply cause prices to rise.

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