Which of the following is true?
A) Because businesses adjust their prices immediately, the short-run aggregate supply curve is vertical.
B) Producers adjust their prices only in the long run, so the short-run aggregate supply curve is upward-sloping.
C) Because businesses adjust prices at different speeds, there is partial but incomplete adjustment of prices, and this results in the upward-sloping short-run aggregate supply curve.
D) In the very short run, the aggregate supply curve is upward-sloping, and this limits how much output can increase in the economy.
Correct Answer:
Verified
Q89: You are an analyst preparing a forecast
Q90: Which graph correctly depicts the very short-run
Q91: Which graph correctly depicts the long-run aggregate
Q92: Why is the very short-run aggregate supply
Q93: In the long run, the aggregate supply
Q95: Why does the aggregate supply curve change
Q96: Given your knowledge of how aggregate supply
Q97: Given your knowledge of how aggregate supply
Q98: Given your knowledge of how aggregate supply
Q99: Aggregate expenditure is the sum of:
A)consumption, planned
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