Fill in the blanks to make the following statements correct. a. The __________ curve relates the price
Question:
Fill in the blanks to make the following statements correct.
a. The __________ curve relates the price level to the quantity of output that firms would like to produce and sell.
b. Each aggregate supply curve is drawn under the assumption that _______ and _______ remain constant.
c. The aggregate supply curve is upward sloping because firms will produce more output only if price to _____ offset higher unit costs.
d. The aggregate supply curve is relatively flat when GDP is below potential output because firms typically have ________ and are able to expand production with little or no increase in unit costs.
e. The aggregate supply curve is relatively steep when GDP is above potential output because firms are operating above __________ and _________ are rising rapidly.
f. The aggregate supply curve shifts in response to changes in and changes in _______ and changes in __________ These are known as supply __________.
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