One Reason That Explains Why the Short-Run Aggregate Supply Curve

question 74

Multiple Choice

One reason that explains why the short-run aggregate supply curve is upward sloping is:

• A) sticky wages.
• B) cartels keeping prices artificially high.
• C) the lag involved with public policy making.
• D) the changing profit levels experienced by firms.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial condition.

Current Ratio

Current ratio is a financial metric used to evaluate a company's ability to pay off its short-term liabilities with its short-term assets.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, calculated as (Current Assets - Inventory) / Current Liabilities.

Credit Risk

The risk of loss due to a borrower's failure to make payments on any type of debt.