As shown in the diagram to the right, the short-run aggregate supply curve (AS) isupward-sloping. This positive slope is explained in part by the fact thatO A. in the short-run, output prices are slower to adjust to increasing aggregatedemand than are input prices.O B. input price increases cause firms to raise their prices.O C.in the short-run, input prices-particularly wage rates are slower toadjust to increasing aggregate demand than are output prices.O D. business owners are more intelligent than other resource owners.Price level, PAggregate output (income), YAS

The Short Run Aggregate Supply (SRAS) curve shows the relationship between the price level and the…

As shown in the diagram to the right, the short-run aggregate supply curve (AS) is upward-sloping. This positive slope is explained in part by the fact that O A. in the short-run, output prices are slower to adjust to increasing aggregate demand than are input prices. input price increases cause firms to raise their prices. OB. OC. in the short-run, input prices-particularly wage rates-are slower to adjust to increasing aggregate demand than are output prices. D. business owners are more intelligent than other resource owners.

As shown in the diagram to the right, the short-run aggregate supply curve (AS) is upward-sloping. This positive slope is explained in part by the fact that O A. in the short-run, output prices are slower to adjust to increasing aggregate demand than are input prices. input price increases cause firms to raise their prices. OB. OC. in the short-run, input prices-particularly wage rates-are slower to adjust to increasing aggregate demand than are output prices. D. business owners are more intelligent than other resource owners.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 5PA

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