The Short-Run Aggregate Supply Curve Is Upward-Sloping Because

question 124

Multiple Choice

The short-run aggregate supply curve is upward-sloping because:

• A)of the interest-rate effect.
• B)higher price levels create incentives to expand output when resource prices remain constant.
• C)of the net export effect.
• D)higher price levels create an expectation among producers of still higher price levels.

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Definitions:

Selling Price

The amount of money for which a product or service is sold to the buyer.

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Discount Period

The time frame within which a payment can be made at a reduced rate before the full invoice amount becomes due.

Payment Terms

The conditions under which a seller will complete a sale, often specifying the period allowed to a buyer to pay off the amount due.