The short-run aggregate supply curve can slope upward because
A) prices are fixed in the short run.
B) wages adjust immediately to changing economic circumstances.
C) producers have misperceptions about the aggregate price level.
D) prices adjust instantaneously.
C
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Why is money you receive at some future date worth less to you than money you receive today?
What will be an ideal response?
Why was the stock market crash of 1929 a disaster for the economy?
(a) Through the "wealth effect," investors lost paper wealth and consequently reduced their spending on goods and services. This led to cutbacks in production and jobs. (b) Businessmen became pessimistic about the future and reduced spending on plants and equipment, thus causing reduced production and increased layoffs in the capital-goods sector of the economy. (c) The crash revealed a flawed structure of credit and weak system of banks and other financial institutions in the U.S. (d) All of the above are correct
A firm's marginal cost is defined as
a. the ratio of total cost to total output. b. the ratio of total output to total cost. c. the additional cost of producing one more unit of output. d. the reciprocal of total average cost.
The typical concave (i.e., bowed-out) shape of the production possibilities frontier reflects the law of increasing opportunity cost
a. True b. False