What determines the slope of the aggregate supply curve is
A. how much more the economy can produce without any change in the price level.
B. how fast the output level changes after a technological advance.
C. how fast the price of factors of production respond to changes in the price level.
D. none of the above.
Answer: C
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Refer to Figure 4-4. What is the value of the deadweight loss at a price of $18?
A) $100 B) $180 C) $660 D) $1,040
If Joey Kobayashi experiences diminishing marginal utility from eating hot dogs then
A) the marginal utility from the next hot dog Joey eats will be negative. B) Joey is maximizing the marginal utility per dollar he receives from eating hot dogs. C) the additional satisfaction he receives from eating another hot dog will be less then the satisfaction he received from his eating his last hot dog. D) his total utility from eating hot dogs is negative.