An increase in the general price level will lead to: a. an upward movement along the short-run...
Question:
An increase in the general price level will lead to:
a. an upward movement along the short-run aggregate supply curve as firms increase output.
b. a rightward shift of the short-run aggregate supply curve as firms increase output.
c. a downward movement along the short-run aggregate supply curve as firms decrease output.
d. a leftward shift of the short-run aggregate supply curve as firms decrease output.
e. no change in output because input prices are sticky.
Aggregate Supply:
Aggregate supply is the relationship between the price level and the level of real GDP supplied.
Answer and Explanation: 1
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View this answerAn increase in the general price level will lead to: (a) an upward movement along the short-run aggregate supply curve as firms increase output.
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Aggregate Supply and Aggregate Demand (AS-AD) Model
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Chapter 7 / Lesson 3
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Understand the aggregate demand-aggregate supply model and its features. Read more about the curve shifts of this and learn the AD-AS model through an example.
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