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 for firms.
E) Firms' total costs of production decrease as output expands beyond the potential level.
Correct Answer:

Verified
Correct Answer:
Verified
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