An Explanation for Why the Short-Run Aggregate Supply Curve Is

question 46

Multiple Choice

An explanation for why the short-run aggregate supply curve is upward-sloping is because:

• A) ​the quantity of real output supplied is inversely related to the aggregate supply curve.
• B) ​nominal incomes are fixed.
• C) ​the capital-output ratio is fixed.
• D) ​an increase in price will increase the marginal aggregate output.​

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Definitions:

Purchase Returns

Goods returned to a supplier from a buyer due to issues like defects or dissatisfaction, often leading to a refund or credit.

Periodic System

An inventory accounting system where updates to inventory levels and cost of goods sold are made at the end of an accounting period.

Purchase Discounts

Reductions in the price of goods purchased, usually as a reward for early payment to the supplier.

Freight-In

The cost associated with getting inventory to a business, usually included in the cost of goods sold.