A Change in the Price Level Brings a ________ the Aggregate

question 137

Multiple Choice

A change in the price level brings a ________ the aggregate supply curve,NOT a ________ the aggregate supply curve.

• A)shift in;movement along
• B)vertical displacement of;change in the slope of
• C)movement along;shift in
• D)change in the slope of;horizontal displacement of
• E)shift in;change in the slope of

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Definitions:

Conditional Factor Demand Function

Represents the quantity of an input demanded at each level of output, prices of inputs, and technology, given the firm's optimization behavior.

Optimal Factor Choice

A decision-making process in which a firm determines the most efficient combination of factors of production (labor, capital, etc.) to maximize output or minimize costs.

Weak Axiom of Cost Minimization (WACM)

An economic principle stating that if a set of goods is chosen over another set at the same prices, then the chosen set should not cost more than the other when prices change.

Input Bundle

A combination of resources or inputs used in the production of goods and services.