An increase in foreign demand for U.S. exports will ____ the demand for U.S. dollars and cause the U.S. dollar to ____ in value

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.

An apple farmer must decide how many apples to harvest for the world apple market. He knows that there is a one-third probability that the world price will be $1, a one-third probability that it will be $1.50, and a one-third probability that it will be $2. His cost function is C(Q) = 0.01Q2. The expected profit-maximizing quantity is:

A. 150. B. 0. C. 90. D. 75.