If Short-Run Aggregate Supply Is Upward Sloping, the Assumption Is

question 224

Multiple Choice

If short-run aggregate supply is upward sloping, the assumption is that

• A) prices are perfectly sticky.
• B) prices are set by government mandate.
• C) prices are constant.
• D) prices adjust gradually.

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Definitions:

Utility Function

In economics, a representation of preferences over a set of goods and services by assigning values, indicating the level of satisfaction or utility derived from them.

Nuts

Edible seeds enclosed in a hard shell, often used as a source of nutrients and energy.

Berries

Small, pulpy, and often edible fruits, typically consumed fresh, frozen, or in various prepared foods and beverages.

Perfect Substitute

A perfect substitute is a good or service that can be used in exactly the same way as another, meaning consumers are indifferent between the two.