If Producers Believe That the Increase in Their Relative Prices

question 97

Multiple Choice

If producers believe that the increase in their relative prices is large relative to the increase in the general price level,then the slope of the short-run aggregate supply curve will be

• A)infinite.
• B)small.
• C)large.
• D)negative.

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Definitions:

Mental Capacity

The ability of an individual to make informed decisions and understand the consequences of those decisions.

Intoxicated

A condition of being under the influence of alcohol or drugs to a degree that impairs a person's physical and cognitive functions.

Void

A void agreement or contract has no legal effect, thus it's as if it never existed due to illegality or impossibility.

Standard of Living

The degree of wealth, comfort, material goods, and necessities available to a person, community, or nation.