Multiple Choice
The price level rises more rapidly as the maximum output level is approached along an aggregate supply curve because
A) profit-taking firms are exploiting their market size and power.
B) of the profit incentive.
C) the costs of additional units of aggregate output begin to rise more rapidly,causing firms to seek higher prices to cover these rising costs.
D) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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