If the aggregate supply curve is steep,
a. increased aggregate demand will not lead to higher prices.
b. greater demand for labor will not cause significant wage increases.
c. business firms are probably producing near capacity.
d. All of the above are correct.
c
Economics
You might also like to view...
Why do both households and societies face many decisions?
a) because resources are scarce b) because populations may increase or decrease over time c) because wages for households and therefore society fluctuate with business cycles d) because people, by nature, tend to disagree
Economics
Which of the following is TRUE regarding business cycles?
I. Cycles are predictable. II. In each cycle, a peak follows an expansion. III. Potential GDP fluctuates around real GDP. A) I and II B) I and III C) II and III D) II only
Economics