The above figure shows the U.S. market for wheat. With international trade, the United States exports ________ of wheat

According to our basic analysis, the cure for inflation should be fairly straightforward. If the problem is too much aggregate demand

What will be an ideal response?

In the short run, an increase in the price level induces firms to expand production because

A) they can increase profits by increasing maintenance costs. B) higher prices allow firms to hire more inputs by offering higher prices for inputs, which increases productivity and profits. C) each firm must keep its production level up to the level of its rivals, and some firms will expand production as the price level increases. D) prices of inputs are held constant, so the higher prices for firms' products imply that it is profitable to expand production.