The Aggregate Supply Curve

question 31

Multiple Choice

The aggregate supply curve:

• A)shows the various amounts of real output that businesses are willing and able to produce at each price level
• B)is downward-sloping, because real purchasing power increases as the price level falls
• C)is downward-sloping, because real purchasing power decreases as the price level falls
• D)is explained by the wealth and foreign trade effects
• E)is vertical

---

Definitions:

Gaining Distribution

The process of making a product available in new retail outlets or channels.

Product Life Cycle

The stages a product goes through from development and introduction to the market, through growth and maturity, and eventually decline and withdrawal.

Introduction Stage

The phase in the product life cycle where a new product is launched into the market, characterized by low sales and potentially high costs.

Stimulate Trial

Marketing efforts aimed at encouraging potential customers to try a product or service for the first time.