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.
b
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An incumbent announces it will significantly increase output in the next period, but only has contracts for the amount produced this period. The announcement is a
A) credible threat. B) non-credible threat. C) commitment. D) mixed strategy.
The supply of the U.S. dollar on the foreign exchange market is generated by:
a. demand for U.S. exports. b. the U.S. demand for the products and financial assets of other countries. c. the U.S. demand for domestic goods and services. d. foreign demand for U.S. products. e. foreign demand for U.S. financial assets.