An Increase in the Price Level Is Likely to Increase

question 157

Multiple Choice

An increase in the price level is likely to increase the aggregate amount of output supplied in the short run because

• A) interest rate is high in the short-run.
• B) wages are sticky in the short-run.
• C) wages change in the short-run.
• D) the aggregate supply curve is vertical in the short-run.

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Definitions:

Offering Price

The price at which shares of a company are initially made available for purchase during an initial public offering or other issuance.

Firm Commitment

An underwriter's guarantee to the issuer to sell an entire offering of stocks or bonds at a set price.

Offering Prospectus

A legal document issued by companies that are offering securities for sale, detailing the company's financial health and investment risks.