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 the above are correct.
Correct Answer:
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Q131: If an economy's resources are fully employed,
A)a
Q132: In the fall of 2007, most economists
Q132: Figure 17-6 Q133: The economy's self-correcting mechanism always tends to Q136: Figure 17-6 Q137: The Phillips curve is a statistical relationship Q138: Figure 17-7 Q140: One way in which the Phillips curve Q142: Figure 17-8 Q147: If policymakers do nothing in a recessionary 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
