The steepness of the aggregate supply curve depends on the:
a. rate of inflation in the economy.
b. change in relative prices of commodities.
c. substitutability of the inputs used in producing various goods and services.
d. ability of the producers to respond to price-level changes in the short run.
e. the market rate of interest.
d
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Critically evaluate the following statement. "Automobile manufacturers continue to produce cars that are dangerous
Therefore the industry should be considered as a market failure and safety mandates should be imposed by the government to insure that all cars are completely safe."
A movement along the AD curve down and to the right is caused by
a. a rightward shift of the money demand curve b. falling consumer confidence c. a decreasing price level d. expansionary open market transactions by the Fed e. a stable price level and increases in consumption, investment, or government spending