-Refer to Table 5.2. In each case, dividing the sum of the data across columns A to D by the data in column F illustrates _____________ and the _______________.
A) rising expenditures, downward sloping AD curve
B) rising unit costs, upward sloping AS curve
C) constant unit costs, horizontal AS curve
D) falling unit costs, downward sloping AS curve

Question

-Refer to Table 5.2. In each case, dividing the sum of the data across columns A to D by the data in column F illustrates _____________ and the _______________.
A) rising expenditures, downward sloping AD curve 
B) rising unit costs, upward sloping AS curve 
C) constant unit costs, horizontal AS curve 
D) falling unit costs, downward sloping AS curve

Quizplus · Accepted Answer

Dividing the sum of data across columns A to D by the data in column F demonstrates how unit costs change as production levels change, which is indicative of the shape of the Aggregate Supply (AS) curve. An upward sloping AS curve suggests that as production increases, unit costs rise, which is consistent with the scenario described.