For the aggregate supply curve, the profit effect:
A. Provides an incentive for producers to decrease output when prices rise.
B. Dominates in the long run and causes the curve to be upward-sloping.
C. Along with the cost effect causes the curve to be downward-sloping in the long run.
D. Is temporary in the short run, while in the long run it is canceled out because the cost effect dominates.
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Home » Business » For the aggregate supply curve, the profit effect: A. Provides an incentive for producers to decrease output when prices rise. B. Dominates in the long run and causes the curve to be upward-sloping. C.