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    Exam 23: Real Gdp and the Price Level in the Short Run
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    In the Short Run,the Aggregate Supply Curve Has a Positive
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In the Short Run,the Aggregate Supply Curve Has a Positive

Question 12

Question 12

Multiple Choice

In the short run,the aggregate supply curve has a positive slope because,as the price level rises,producers can


A) accumulate inventories.
B) charge a higher price sufficient to cover their higher unit costs.
C) experience rising factor prices.
D) produce less in response to falling profits.
E) increase output at unchanged unit costs.

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