The Aggregate Supply Curve Tends to Be Relatively Steep When

question 116

Multiple Choice

The aggregate supply curve tends to be relatively steep when GDP is above potential output because firms are operating above ________,and ________ are rising rapidly.

• A)equilibrium output; unit costs
• B)profit-maximizing output; total costs
• C)capacity; unit costs
• D)equilibrium output; total costs
• E)equilibrium output; average costs

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Definitions:

Proper Form

The required or correct format, arrangement, or procedure that a document, action, or process must adhere to according to rules, standards, or laws.

Closing

The process of finalizing accounts at the end of an accounting period to prepare them for the next period.

Post-closing Trial Balance

A list of all permanent accounts and their balances after closing entries are made, used to check the balance and prepare for the new accounting period.

Proper Form

Compliance with established rules and guidelines, ensuring correctness in structure or procedure.