Along a Short-Run Aggregate Supply Curve,a Decrease in the Price

Along a short-run aggregate supply curve,a decrease in the price level causes

A) firms to increase their production levels, as the lower prices will increase consumer demand.
B) no change in output to occur, as at the macroeconomic level, the price level does not affect supply.
C) firms to reduce their production levels.
D) production levels to rise as the price of inputs becomes cheaper.

Correct Answer:

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