Which of the Following Is True in the Short Run

question 142

Multiple Choice

Which of the following is true in the short run?

• A) The aggregate supply curve is horizontal.
• B) The aggregate supply curve is vertical.
• C) Per-unit costs do not increase as much as output prices when the price level rises.
• D) An increase in price per unit results in a decrease in profit per unit for firms.
• E) Firms' total costs of production decrease as output expands beyond the potential level.

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Definitions:

Journal

A detailed record where all financial transactions of a business are initially recorded, serving as the primary source of accounting data.

Ledger Accounts

Financial records that provide a detailed account of all the transactions related to a particular item over a period.

Journal

A book or electronic record where all transactions are recorded in chronological order.

Chronological Record

A documentation method in which events or transactions are recorded in the order that they occurred.