Author Question: A supply curve slopes upward because a. as more is produced, total cost of production falls. b. ... (Read 56 times)

nelaaney · **on:** Jun 30, 2018

A supply curve slopes upward because
a. as more is produced, total cost of production falls.
b. many firms will experience increases in their costs of production as their output rises so they need a higher price in order to induce them to produce more output.
c. the higher the price per unit, the greater the profitability generated by supplying more of that good.
d. both (b) and (c).

Question 2

If there is currently an inflationary gap:
a. The price level will tend to rise.
b. Real output will tend to fall.
c. Both a. and b. will occur.
d. None of the above will occur.