The Short-Run Aggregate Supply Curve Slopes Upward Because a _____

question 20

Multiple Choice

The short-run aggregate supply curve slopes upward because a _____ aggregate price level leads to _____.

• A) higher; lower output as costs of production increase
• B) higher; higher output, since most production costs are fixed in the short run
• C) lower; higher output, since production costs tend to fall in the short run
• D) lower; higher profit and higher productivity

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Definitions:

Internal Control Environment

The overall attitude, awareness, and actions of directors, management, and personnel regarding internal controls and their importance in the organization.

Monitoring Policies

Procedures and guidelines established by an organization to systematically observe and assess the effectiveness of its policies and procedures.

Internal Control

Processes and procedures implemented by a business to safeguard its assets, ensure accurate and reliable financial reporting, promote efficiency, and ensure compliance with laws and regulations.

Assets Safeguarded

Measures or controls implemented to protect a company’s assets from theft, damage, or misuse.