The Aggregate Supply Curve Slopes Upward Because Firms

question 23

Multiple Choice

The aggregate supply curve slopes upward because firms

• A)seek to maximize profits and output.
• B)normally can purchase inputs at fixed prices.
• C)employ technology, which is always fixed.
• D)purchase inputs whose prices rise as output rises.

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Definitions:

Extension

A geological process in which the Earth's crust is stretched, leading to the formation of faults and rift valleys.

Normal Faulting

A type of fault where the hanging wall slides downward; caused by tension in the crust.

Foliation

The repetitive layering in metamorphic rocks caused by the reorientation of minerals under directional pressure.

Lineation

The alignment of linear features, such as minerals or textures, within a rock that indicates a directional force or flow.