The aggregate supply curve (short run) is upsloping because:
A. wages and other resource prices match changes in the price level.
B. the price level is flexible upward but inflexible downward.
C. per-unit production costs rise as the economy moves toward and beyond its full-
employment real output.
D. wages and other resource prices are flexible upward but inflexible downward.
C. per-unit production costs rise as the economy moves toward and beyond its full- employment real output.
You might also like to view...
Distinguish the terms price ceiling and price floor.
What will be an ideal response?
When a person reenters the labor force and looks for a job after spending time at home raising a child
A) cyclical unemployment increases. B) structural unemployment decreases. C) frictional and cyclical unemployment increase. D) frictional unemployment increases.
Money is what people in a society regularly use when purchasing or selling goods and services.
Select whether the statement is true or false. A. True B. False
In 2014, which of the following countries had the highest ratio of exports to GDP?
A) United States B) Germany C) Japan D) Netherlands