In the short run, the aggregate supply curve reacts to:
A) price changes.
B) wage warfare.
C) cartels.
D) price ceilings.

Question

Quizplus · Accepted Answer

In the short run, the aggregate supply curve responds to changes in prices, as firms can adjust their output levels without making significant changes to their production facilities or technologies. However, in the long run, wages and other input costs are likely to adjust to the new prices, shifting the aggregate supply curve back to its original position. Cartels and price ceilings may impact specific industries or markets, but they are unlikely to have a significant impact on the overall aggregate supply curve.

In the Short Run, the Aggregate Supply Curve Reacts To