The Short-Run Aggregate Supply Curve Is Upward Sloping Because

question 64

Multiple Choice

The short-run aggregate supply curve is upward sloping because

• A)output prices rise and fall faster than input prices rise and fall, respectively.
• B)of the real balance effect.
• C)of the substitution-of-foreign-goods effect.
• D)of the interest rate effect.

---

Definitions:

Non-discriminating Monopolist

A monopolist that charges all consumers the same price for its product.

Marginal Revenue

The added income resulted from the transaction of an additional unit of a product or service.

Monopolist

A single seller in a market with no close substitutes for the product or service, allowing for control over prices.

Non-discriminating Monopolist

A monopolist who charges a single price for its product to all consumers, regardless of market segment differences.