Q35 The positive relationship between short-run aggregate supply and the price level indicates that, in the short run, Select one: a. firms produce more output as the price level rises. b. the money wage rate increases when moving along the short-run aggregate supply curve. c. lower price levels are more profitable for firms. d. firms produce more output as the price level falls.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section23.4: The Aggregate-supply Curve
Problem 4QQ
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Q35

The positive relationship between short-run aggregate supply and the price level indicates that, in the short run,
Select one:
a. firms produce more output as the price level rises.
b. the money wage rate increases when moving along the short-run aggregate supply curve.
c. lower price levels are more profitable for firms.
d. firms produce more output as the price level falls.
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