Multiple Choice
Which statement characterizes a short-run aggregate supply curve?
A) The short-run aggregate supply curve portrays an inverse relationship between the price level and quantity of aggregate output.
B) Resource utilization is constant along the short-run aggregate supply curve.
C) A movement along a short-run aggregate supply curve that is reflected in a decrease in the price level encourages firms to expand production.
D) A movement along a short-run aggregate supply curve that is reflected in an increase in the price level encourages firms to expand production.
Correct Answer:

Verified
Correct Answer:
Verified
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