The Positively Sloped Portion of the Aggregate Supply Curve Is

question 74

Multiple Choice

The positively sloped portion of the aggregate supply curve is drawn on the assumption that:

• A) resources are scarce.
• B) wealth is constant.
• C) there is no change is fiscal policy.
• D) price levels are constant.

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Definitions:

Cash in Hand

The amount of cash a company or individual possesses that is readily available for use.

Inventories

The complete list of items such as products, goods in production, or materials that a company holds, intended for sale or use in the production process.

Current Liabilities

Short-term financial obligations that are due within one fiscal year or the operating cycle of a business, whichever is longer.

Cash at Bank

The amount of liquid assets or cash that a company or individual has deposited in a banking institution.