Which of the following is true if marginal costs increase at a slow rate as output increases?
a. The short-run aggregate supply curve is relatively steep.
b. The short-run aggregate supply curve becomes vertical
c. The short-run aggregate supply curve is relatively flat.
d. The long-run aggregate supply curve becomes horizontal.
e. The long-run aggregate supply curve becomes downward sloping.
c
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An example of a seasonally unemployed worker would be
A) a day care provider who quits his job to go back to school. B) a mother who quits her job to stay home with her children. C) a General Motors employee loses her job because the company is downsizing its work force. D) a software engineer who is laid off because of declining demand for the software he writes. E) a ski lift operator who loses his job when the snow melts in the spring.
A decrease in the demand for American-made goods will
A) increase the supply of dollars in the foreign exchange market. B) decrease the supply of dollars in the foreign exchange market. C) decrease the demand for dollars in the foreign exchange market. D) increase the demand for dollars in the foreign exchange market.