Moving Along the Aggregate Supply Curve, When the Price Level

question 167

Multiple Choice

Moving along the aggregate supply curve, when the price level rises, the

• A)quantity supplied does not change because the aggregate supply curve is a vertical line.
• B)the quantity supplied increases.
• C)the quantity supplied decreases.
• D)the aggregate demand curve shifts rightward.
• E)the aggregate demand curve shifts leftward.

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Definitions:

Trade Discount

A reduction in the listed price of goods or services offered by sellers to buyers as an incentive or for bulk purchases, not recorded separately in financial books.

Catalog List Price

The advertised price of a product or service in a catalog, before any discounts or promotions.

Cost of Inventory Sold

The total cost of goods sold during a specific period, including the cost of acquiring or manufacturing the goods.

Sales

The transactions involved in selling goods or services to customers, generating revenue for a business.