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NemiM [27]
3 years ago
12

The aggregate supply curve normally a. slopes downward and to the right due to higher resource prices. b. has a horizontal slope

equal to zero. c. is very steep in the lower portion and flatter in the upper portion. d. slopes upward to the right due to short-run fixed costs of production.
Business
1 answer:
8090 [49]3 years ago
7 0

Answer:

The answer is: D) slopes upward to the right due to short-run fixed costs of production.

Explanation:

In the short run, companies have fixed factors of production: prices, wages, and capital. In the short run, aggregate supply curve shows the correlation between the price level and output (normal supply curve). Only in case of a production increase due to technological improvements or other factors (decreasing input prices, etc), may the aggregate supply curve shift outward.

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