Ask Question
BusinessBusiness
31 October, 09:01

An increase in the price level will

A. move the economy up along a stationary short run aggregate supply curve.

B. move the economy down along a stationary short run aggregate supply curve.

C. shift the short run aggregate supply curve to the right.

D. shift the short run aggregate supply curve to the left.

+5
Answers (2)
  1. 31 October, 10:29
    0
    Answer: The correct option is C. shift the short run aggregate supply curve to the right.

    Explanation: A country's aggregate supply is a reflection or representation of the real Gross domestic product (GDP), and this refers to the total amount of products in which all the suppliers in the economy are able to sell at a given price level.

    Therefore, as the price level changes significantly, this will affect the the aggregate Supply in a proportionate manner. In this case, as the price level increases, suppliers will be more inclined to supply more and there will be an increase in supply.

    This increase in supply will cause a rightward shift in the short run aggregate supply curve.
  2. 31 October, 10:55
    0
    A. move the economy up along a stationary short run aggregate supply curve.

    Explanation: The aggregate supply curve is a graphical representation of the real Gross domestic product or the products which the economy is able to sell at a given price level. As the price level changes significantly so also does the aggregate Supply changes and when represented in the graph it will show either an upward or downward movement.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An increase in the price level will A. move the economy up along a stationary short run aggregate supply curve. B. move the economy down ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Is unemployment always bad for an economy?
Answers (1)
Cooley company's stock has a beta of 1.32, the risk-free rate is 4.25%, and the market risk premium is 5.50%. what is the firm's required rate of return?
Answers (1)
In our lecture about Strategic fit, we learned that a company's competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services, and its supply chain strategy determines the nature of procurement and
Answers (1)
Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. The Pound Co. paid the invoice within the discount period. What is the sales amount to be recorded in the above transactions?
Answers (2)
Amram Inc. can issue a 20-year bond with a 6% annual coupon. This bond is not convertible, is not callable, and has no sinking fund.
Answers (2)
New Questions in Business
What explanations have economists offered for why firms don't raise prices when doing so would seem to increase profits? Firms might not raise prices when doing so might increase profits because A.
Answers (1)
Compute ending work in process inventory for a manufacturer with the following information. Raw materials purchased ... $124,800 Direct materials used ... 74,300 Direct labor used ... 55,000 Total factory overhead ...
Answers (1)
Cole has a credit card bill of $3,100. His credit limit is $3,000. Is Cole using credit responsibly or irresponsibly? A. responsibly B. irresponsibly
Answers (1)
In the month of November Marigold Corp. wrote checks in the amount of $43300. In December, checks in the amount of $59239 were written. In November, $39630 of these checks were presented to the bank for payment, and $50932 in December.
Answers (1)
Donald and Charlene are married and do not have any children. They plan to ensure that the other will not be unduly burdened by debts in case one of them dies. Each plans to continue to work after the other one dies.
Answers (1)
Home » Business » An increase in the price level will A. move the economy up along a stationary short run aggregate supply curve. B. move the economy down along a stationary short run aggregate supply curve. C. shift the short run aggregate supply curve to the right.
Sign Up Forgot Password?