The Short-Run Aggregate Supply Curve

question 35

Multiple Choice

The short-run aggregate supply curve:

• A)has the same slope as the long-run aggregate supply curve.
• B)shifts only when the long-run aggregate supply curve shifts in the same direction.
• C)normally slopes upward to the right because the costs of labor and other inputs are relatively fixed in the short run.
• D)normally has a slope of zero, meaning the curve is horizontal.
• E)is normally perpendicular to the horizontal axis.

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Definitions:

Net Operating Income

A measure of a company's profitability, calculated as gross revenue minus operating expenses, excluding taxes and interest.

Monthly Sales

Monthly sales refer to the total revenue generated from sales activities during a specific month, indicating the performance and growth trends of a business.

Dollar Sales

The total monetary value of sales achieved by a company over a specific period of time, reflecting both volume and price.

Target Profit

Target profit is the amount of net income a business aims to generate, calculated as projected sales minus estimated costs and expenses.