The short-run AS curve is upward-sloping because:
A) as output rises the rate of increase in wage rates falls and inflation falls.
B) rising output calls for an increase in capital stock to provide production capacity.
C) inflation rates higher than wage rate increases raise prices relative to costs and make higher output more profitable.
D) higher inflation rates draw in more imports.
Correct Answer:
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Q48: Q49: Q50: Q51: Which one of the following statements is Q52: The short-run AS curve is drawn on Q54: The aggregate supply (AS) curve will shift Q55: When there is a recessionary gap, wage Q56: When there is an inflationary gap: Q57: If a short-run equilibrium with a recessionary Q58: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A) upward![]()