Which one of the following correctly describes the slope of the aggregate supply curve?
A) Because individual supply curves slope up, the aggregate supply curve slopes down.
B) The slope of the aggregate supply curve is determined by the willingness of consumers to substitute between goods in response to changes in their relative prices.
C) The aggregate supply curve slopes up to reflect the fact that firms are willing to increase output when their selling prices rise but wages do not.
D) The aggregate supply curve slopes up to reflect the fact that firms are willing to increase output when wages rise but their selling prices do not.
Correct Answer:
Verified
Q10: Which of the following is true about
Q11: The aggregate demand curve would shift to
Q12: The U.S. aggregate demand curve would shift
Q13: The aggregate demand curve
A) tells us what
Q14: An increase in the level of prices
Q16: Real GDP can increase as a result
Q17: Which one of the following would most
Q18: An increase in government spending
A) leads to
Q19: As consumers increase their planned spending
A) aggregate
Q20: An increase in investment spending by firms
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