The Short-Run Aggregate Supply Curve Is Positively Sloped Because

question 176

Multiple Choice

The short-run aggregate supply curve is positively sloped because:

• A) a short-run increase in GDP usually is accompanied by an increased rise in the price level.
• B) many input prices are slow to change in the short run.
• C) all variables are fixed in the short run.
• D) a short-run increase in GDP usually is accompanied by a slower rise in the price level.

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Definitions:

Hard Rationing

A situation in corporate finance where there is a strict limit on the amount of new equity a company can issue.

Operating Cash Flow

Operating cash flow refers to the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Variable Costs

Expenses that change in proportion to the amount of goods produced or the extent of services rendered.

Sales Quantity

The total number of units of a product sold in a particular period.