What Happens to Aggregate Supply When Production Costs Adjust Completely

question 15

Multiple Choice

What happens to aggregate supply when production costs adjust completely to price increases?

• A)Both equilibrium output and prices increase
• B)Only prices rise;equilibrium output remains fixed
• C)Only equilibrium output rises;equilibrium prices remain fixed
• D)Equilibrium output falls while prices rise
• E)Both equilibrium output and prices remain fixed

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