Suppliers Have an Incentive to Increase Aggregate Output Whenever the Price

question 45

True/False

Suppliers have an incentive to increase aggregate output whenever the price level rises faster than the cost of production.

---

Definitions:

Social Setting

The physical and social context in which people live, work, or interact, influencing their behavior, interactions, and perceptions.

Illumination

The provision of light, making something visible or brightened, or the process of clarifying and making something understood.

Productivity

The measure of how efficiently resources are used to produce goods and services.

Social Needs

Human requirements for belonging, affection, acceptance, and friendship – part of Maslow's hierarchy of needs.