Which of the Following Is True of the Aggregate Supply

question 2

Multiple Choice

Which of the following is true of the aggregate supply curve?

• A)It portrays an inverse relationship between the price level and quantity of aggregate output.
• B)Resource utilization is constant along the curve.
• C)A decrease in the price level encourages firms to expand production because the cost of production decreases.
• D)The curve is upward-sloping.
• E)As average prices in the United States rise relative to average prices in other countries,U.S.producers find export markets more attractive than domestic markets.

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Definitions:

IRA Distribution

Money that is taken out from an Individual Retirement Account, which may be subject to taxes and penalties depending on the timing and circumstances of the distribution.

Exemptions

Specific deductions allowed by tax regulations that reduce taxable income, often related to dependents or types of income.

Net Check

Net check is the amount of money an employee receives after all deductions, such as taxes and health insurance, have been subtracted from the gross pay.

Payroll Tax Liability

The obligation of an employer to withhold and pay taxes to the government based on the wages and salaries paid to employees.