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Which of the Following Is True in the Short Run

Question 124

Multiple Choice

Which of the following is true in the short run?


A) The aggregate supply curve is horizontal.
B) The aggregate supply curve is vertical.
C) Per-unit costs do not increase as much as output prices when the price level rises.
D) An increase in price per unit results in a decrease in profit per unit.
E) Firms' total costs of production decrease as output expands beyond the potential level.

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