Moving Along the Aggregate Supply Curve,when the Price Level Rises

question 313

Multiple Choice

Moving along the aggregate supply curve,when the price level rises,

• A)the quantity supplied does not change because the aggregate supply curve is a vertical line.
• B)the quantity supplied increases.
• C)the quantity supplied decreases.
• D)the aggregate demand curve shifts rightward.
• E)the aggregate demand curve shifts leftward.

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Definitions:

Total Cost

The complete cost of producing a specific number of goods or services, including both fixed and variable costs.

Bean Sprouts

Edible sprouts derived from the germination of beans, commonly used in Asian cuisine.

Firm's Production

Refers to the total output of goods and services produced by a business within a certain period of time.

Inverse Demand

A representation of demand that expresses price as a function of quantity demanded, contrary to the usual demand function which expresses quantity demanded as a function of price.