The Short-Run Aggregate Supply Curve

question 41

Multiple Choice

The short-run aggregate supply curve:

• A)​has the same slope as the LRAS.
• B)​shifts only when the LRAS shifts in the same direction.
• C)​normally slopes upward to the right because the costs of labor and other inputs are relatively fixed in the short run.
• D)​normally has a slope of zero, meaning the curve is horizontal.

---

Definitions:

Cash Inflows

The movement of money into a business or account, often from sales, investments, financing, or other sources.

Cash Outflows

Financial transactions that involve the spending of money, leading to a decrease in the cash balance of a business.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by dividing current assets by current liabilities.

Current Liabilities

Short-term financial obligations that a company is required to pay within one year, such as accounts payable and short-term loans.