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The Positive Relationship Between Short-Run Aggregate Supply and the Price

Question 333

Multiple Choice

The positive relationship between short-run aggregate supply and the price level indicates that, in the short run,


A) firms produce more output as the price level falls.
B) the money wage rate increases when moving along the short-run aggregate supply curve.
C) firms produce more output as the price level rises.
D) lower price levels are more profitable for firms.

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