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For the Aggregate Supply Curve,the Profit Effect

Question 47

Multiple Choice

For the aggregate supply curve,the profit effect


A) Provides an incentive for producers to decrease output when prices rise.
B) Dominates in the long run and causes the curve to be upward-sloping.
C) Along with the cost effect causes the curve to be downward-sloping in the long run.
D) Is temporary in the short run,while in the long run it is canceled out because the cost effect dominates.

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