The Short-Run Aggregate Supply Curve Slopes Upward Because,with a Given

question 145

Multiple Choice

The short-run aggregate supply curve slopes upward because,with a given equilibrium wage rate,a higher actual price level will

• A)reduce the actual real wage and induce firms to hire more labor.
• B)shift the labor supply curve.
• C)increase the aggregate demand for goods,so that output will rise.
• D)All of these.

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Definitions:

Lithium

A chemical element used primarily in psychiatric medication to treat mood disorders such as bipolar disorder.

Bipolar Disorder

A disorder in mental health featuring intense fluctuations in mood from very elevated states (mania or hypomania) to very low states (depression).

Therapeutic Drugs

Medications used to treat, cure, or prevent disease and maintain health.

Bipolar Disorder

A condition affecting mental well-being, defined by pronounced changes in mood, with periods of intense happiness (mania or hypomania) and deep sadness (depression).