The main reason why the economy's aggregate supply curve slopes upward is that
A) as the price level rises, businesses incur additional costs.
B) businesses typically purchase labor and other inputs under long-term contracts that fix the cost of the input in money terms.
C) as the price level rises, workers have higher real wages to spend for additional consumer goods.
D) All of these responses are correct.
Correct Answer:
Verified
Q122: All points on the long-run Phillips curve
Q123: In the face of the 2007-2009 recession,
Q124: In what way do policymakers have to
Q125: The main process by which a recessionary
Q126: One reason that the Phillips curve "broke
Q128: One way in which the Phillips curve
Q129: The economy's self-correcting mechanism always tends to
Q130: Most economists now agree that the Phillips
Q131: If an economy's resources are fully employed,
A)a
Q132: In the fall of 2007, most economists
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents