Why Does the Short-Run Aggregate Supply Curve Slope Upward

question 126

Multiple Choice

Why does the short-run aggregate supply curve slope upward?  

• A) because quantity supplied increases when cost per unit falls 
• B) because quantity supplied decreases when cost per unit falls 
• C) because quantity supplied increases when the price level increases 
• D) because quantity supplied increases when GDP decreases

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Definitions:

Present Values

A calculation that determines the present worth of a future sum of money or stream of cash flows, given a specified rate of return.

Technical Analysis

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume.

Statistical Analysis

A method of collecting, reviewing, and interpreting data to discover patterns, correlations, or trends.

Present Value

It measures the current value of a future amount of money or stream of cash flows, using a specific discount rate to account for the time value of money.