In the upward-sloping segment of the aggregate supply curve,
a. increases in output are linked to decreases in the price level.
b. increasing prices drag down resource costs.
c. producers can hire more workers without having to raise the wage rate.
d. the economy can increase aggregate supply without prices going up.
e. firms are willing to pay higher wages to get more labor.
e
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The process of an economy adjusting from a recession back to potential GDP in the long run without any government intervention is known as
A) fiscal policy. B) monetary policy. C) an automatic mechanism. D) "releasing sticky prices."
If a social planner were running a monopoly, that planner could achieve an efficient outcome by charging the price that is determined by the
a. minimum point on the average total cost curve. b. intersection of the average total cost curve and the demand curve. c. intersection of the marginal cost curve and the demand curve. d. intersection of the marginal cost curve and the marginal revenue curve.