Which of the Following Statements About the Short-Run Aggregate Supply

question 157

Multiple Choice

Which of the following statements about the short-run aggregate supply curve is most accurate?

• A)It shifts only when the LRAS shifts in the same direction.
• B)It is not as steeply sloped as the LRAS.
• C)It normally has a slope of zero, meaning the curve is horizontal.
• D)It normally slopes upward to the right because the costs of labour and other inputs are relatively fixed in the short run.

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Definitions:

Maturity Date

The date on which a financial obligation must be repaid or settled in full.

Principal Repaid

The amount of a loan's principal that has been paid back to the lender, not including interest payments.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, representing its worth at issuance.

Interest Dates

Specific dates on which interest payments are made by the issuer of a debt instrument to the holders.