Which of the Following Best Describes Why the Aggregate Supply

question 96

Multiple Choice

Which of the following best describes why the aggregate supply curve slopes upward?

• A)When actual output exceeds potential,firms struggle to keep production in line with the high demand.Firms therefore raise their prices by more than the usual amount in an attempt to cover increased production costs.
• B)When actual output exceeds potential,firms have an easy time keeping production in line with the high demand.Firms therefore lower their prices by more than the usual amount in an attempt to cover increased production costs.
• C)When actual output exceeds potential,firms struggle to keep production in line with the high demand.Firms therefore lower their prices with decreased production costs.
• D)When actual output falls below potential,firms easily keep production in line with the high demand.Firms therefore raise their prices by more than the usual amount in an attempt to cover increased production costs.
• E)None of the above is correct.

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Definitions:

High Powered Sales Goals

Aggressive sales targets designed to motivate and challenge sales teams to achieve exceptional performance.

Accelerate Costs

Costs that increase at a rate faster than usual, often due to rapid growth or expansion activities.

Delay Sales

A strategy or situation in which the sale of goods or services is postponed to a later time, possibly in anticipation of more favorable market conditions or prices.

Encrypted Servicing

The process of providing services through secure, encrypted communications to protect sensitive information.