The Upward Slope of the Short-Run Aggregate Supply Curve Is

question 104

Multiple Choice

The upward slope of the short-run aggregate supply curve is based on the assumption that:

• A) Wages and other resource prices do not respond to price level changes
• B) Wages and other resource prices do respond to price level changes
• C) Prices of output do not respond to price level changes
• D) Prices of inputs flexible while prices of outputs are fixed

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Definitions:

Predicted Vital Capacity

An estimated measurement of the maximum amount of air a person can expel from the lungs after a maximum inhalation.

Height

The measurement of someone or something from head to foot or from base to top.

Breathing Rate

The number of breaths taken within a set amount of time, an important aspect of respiratory health.

Hyperventilation

Rapid or deep breathing that can lead to decreased levels of carbon dioxide in the blood, possibly causing lightheadedness or tingling in the limbs.