The Aggregate Supply Curve Slopes

question 48

Multiple Choice

The aggregate supply curve slopes:

• A)downward because firms can sell more, and hence, will produce more when prices are lower.
• B)downward because firms find it costs less to purchase labor and other inputs when prices are lower and hence, they produce more.
• C)upward because firms normally can purchase some labor and other inputs at fixed costs for some period of time.
• D)upward because firms find that it costs more to purchase labor and other inputs when prices are higher and hence they must produce and sell more in order to make a profit.

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Definitions:

Sales Presentation

A structured pitch by a salesperson to persuade a potential buyer about the benefits and features of a product or service.

Feedback Signals

Information or responses received from an audience or system that indicate whether an action or process is effective or preferred.

Evaluative Listener

A listener who focuses on the content of the message and evaluates or judges the information being presented.

Decoding Tools

Instruments or methods used to interpret or make sense of encoded information or data.