In the Upward-Sloping Segment of the Aggregate Supply Curve

question 24

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 labour.

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Definitions:

Canary Current

A cold ocean current flowing southward along the western coast of North Africa, part of the North Atlantic subtropical gyre.

Atmospheric Water

Water contained in the Earth's atmosphere in the form of vapor, clouds, and precipitation, crucial for the global water cycle.

Desert

A dry region with a mean annual precipitation of 25 cm or less; commonly applied to areas with sparse vegetation or the presence of desert-type plants and landscapes.

Equatorial Regions

Regions located at or near the equator, characterized by year-round warm temperatures and often, high humidity and rainfall.