The slope of the aggregate supply curve increases as output increases because
a. the cost of resource-use increases as potential is reached.
b. consumers are willing to pay more as output expands.
c. firms substitute capital for labor as prices increase.
d. firms substitute capital for labor as capacity is reached.
a
Economics
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Goods known as substitutes increase the use of another good.
a. true b. false
Economics
Refer to the diagram. If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:
A. cannot be achieved because resources are fully employed.
B. will cost 1 unit of computers.
C. will cost 2 units of computers.
D. will cause some resources to become unemployed.
Economics