The Short-Run Aggregate Supply Curve Slopes

question 115

Multiple Choice

The short-run 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:

Self-Efficacy

refers to an individual’s belief in their own ability to complete tasks and achieve goals.

Self-Adulation

The act of excessive admiration or praise of oneself.

Self-Enhancement

A psychological process in which individuals seek to improve their self-image by acquiring and emphasizing positive feedback about themselves.

Narcissism

A personality trait characterized by an excessive focus on oneself, a high need for admiration, and a lack of empathy for others.