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If the Prices of Inputs Change, What Will Happen to the Aggregate

Question 61

Multiple Choice

If the prices of inputs change, what will happen to the aggregate supply curve?


A) The aggregate supply curve does not move, but the economy moves along the curve.
B) The aggregate supply curve depends on whether the input prices rise or fall.
C) The curve will become flatter or steeper depending on whether the input prices rise or fall.
D) The aggregate supply curve shifts inward or outward depending on whether the input prices rise or fall.

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