Which Statement Characterizes a Short-Run Aggregate Supply Curve

question 88

Multiple Choice

Which statement characterizes a short-run aggregate supply curve?  

• A) The short-run aggregate supply curve portrays an inverse relationship between the price level and quantity of aggregate output. 
• B) Resource utilization is constant along the short-run aggregate supply curve. 
• C) A movement along a short-run aggregate supply curve that is reflected in a decrease in the price level encourages firms to expand production. 
• D) A movement along a short-run aggregate supply curve that is reflected in an increase in the price level encourages firms to expand production.

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