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Which Statement Characterizes a Short-Run Aggregate Supply Curve

Question 88

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.

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