If the Price Level Kept Increasing, the Short-Run Aggregate Supply

question 234

Multiple Choice

If the price level kept increasing, the short-run aggregate supply (SRAS) curve would get steeper because

• A) all the unemployed would eventually be hired.
• B) there are limits to how long workers can work long hours and capital can go without proper maintenance.
• C) the rate at which capacity can be expanded increases indefinitely.
• D) the long-run aggregate supply curve is horizontal.

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Definitions:

Transportation Problem

A logistical dilemma involving the determination of the most cost-efficient routing of goods from several supply points to various demand locations.

Routes

The paths or courses taken to get from one location to another, often used in logistics, navigation, and network design.

Optimal Solution

The best possible outcome or answer found through a particular process of calculation, reasoning, or problem-solving, considering all constraints and objectives.

Northwest-Corner Rule

A method used in transportation models of linear programming for finding a feasible solution by starting allocations from the northwest corner of a matrix.