The Slope of the Short-Run Aggregate Supply Curve Shows That

question 89

Multiple Choice

The slope of the short-run aggregate supply curve shows that:

• A) as overall price levels increase, firms are willing to produce more.
• B) as overall price levels decrease, firms are willing to produce more.
• C) firms are constrained to a certain level of output in the short run, regardless of the price.
• D) firms are constrained to a certain price in the short run, regardless of level of output.

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Definitions:

Secret Price Concessions

Unadvertised discounts or reductions in price offered to buyers, often as part of negotiation processes in sales transactions.

OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of oil-exporting countries aimed at coordinating and unifying petroleum policies to secure fair and stable prices for petroleum producers.

International Cartel

An agreement among companies from different countries aimed at controlling production, fixing prices, or limiting competition in the international market.

Collusion

An agreement, usually secretive, between firms to fix prices, limit supply, or divide markets to reduce competition and increase profits.