The positive relationship between short-run aggregate supply and the price level indicates that, in the short run
A) firms produce more output as the price level falls.
B) firms produce more output as the price level rises.
C) the money wage rate increases when moving along the short-run aggregate supply curve.
D) lower price levels are more profitable for firms.
B
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What is product differentiation? What market structure is characterized by product differentiation?
What will be an ideal response?
Next period's capital is equal to current-period investment
A) plus the amount of current capital left over after depreciation. B) minus the amount of current capital left over after depreciation. C) plus the amount of current period depreciation. D) minus the amount of current period depreciation.
Which was not a result of the California gold rush?
a. A substantial increase in the money supply. b. A large increase in GNP. c. A significant decrease in the prices of farm goods. d.
When aggregate demand is too low to ensure full employment, those in favor of using monetary and fiscal policy to stabilize the economy might recommend
a. cutting government spending. b. raising taxes. c. having the Fed purchase government bonds. d. reducing the money supply.