The slope of the short-run aggregate supply curve shows that:
A. as overall price levels decrease, firms are willing to produce more.
B. firms are constrained to a certain level of output in the short run, regardless of the price.
C. firms are constrained to a certain price in the short run, regardless of level of output.
D. as overall price levels increase, firms are willing to produce more.
Answer: D
You might also like to view...
A monopolist that maximizes total revenue earns maximum economic profit
a. True b. False Indicate whether the statement is true or false
If a change in price does not lead to any change in revenue, then demand over that range of prices is inelastic
a. True b. False
_____ shows the nominal exchange rate at which a given basket of goods and services in a country would cost the same as in another country
a. Consumer price index b. Purchasing Power Parity c. Wholesale price index d. Real balance effect
Based on the graph below, what is the difference between the purely competitive equilibrium level of output and the pure monopoly equilibrium level of output?
A. 20
B. 70
C. 90
D. 110