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The Short-Run AS Curve Is Upward-Sloping Because

Question 53

Multiple Choice

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.

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