Question

Which of the following will increase the short-run aggregate supply?

A. an increase in wages

B. a decrease in the price of capital

C. an increase in government spending on education

D. an increase in consumption spending

2.

All the following explain price stickiness except

Question 2 options:

A. firms choose not to adjust prices until they can assess if changes in sales are temporary or permanent.

B.the more firms produce, the lower the average cost of production. Therefore, firms are willing not raise prices as long as they can sell more.

C. firms may be concerned that consumers may be angered by price increases.

D. firms may be concerned that their rivals may not match their price increases.

3. A movement along the short-run aggregate supply curve in response to a change in the price level is called a

	A. determinant of aggregate supply.
	B. revealed cost on aggregate supply.
	C. change in aggregate supply.
	D. change in the aggregate quantity of goods and services supplied.