Which of the Following Can Explain the Upward Slope of the Short-Run

question 87

Multiple Choice

Which of the following can explain the upward slope of the short-run aggregate supply curve?

• A)nominal wages are slow to adjust to changing economic conditions
• B)as the price level falls,the exchange rate falls
• C)an increase in the money supply lowers the interest rate
• D)an increase in the interest rate increases investment spending

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Definitions:

Bad Lots

Refers to batches of products that fail to meet quality standards or specifications.

Assignable Causes

Specific, identifiable sources of variation in a process, distinguished from random variations.

Variation

Refers to the differences or deviations in data, characteristics, or occurrences.

Standard Deviation

A statistic that measures the dispersion or variation from the average for a set of data, indicating how spread out the data points are.