Which of the following explains why higher prices in the goods and services market measured by the CPI leads to an upward-sloping aggregate supply curve?
a. The higher prices will temporarily improve profit margins because the cost of wages and salaries are fixed in the short run.
b. The higher prices will reduce the purchasing power of the fixed quantity of money and, thereby, stimulate
additional output.
c. The higher prices will expand the economy's resource base and, thereby, stimulate additional output.
d. The higher prices will improve technology and, thereby, stimulate additional output.
a
Economics
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During the expansion phase of the business cycle, which of the following eventually increases?
A) income B) production C) employment D) all of the above
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In regard to crowd funding, it was expected that the SEC would limit the amount that small investors can invest in any one company to no more than:
A) $1000 B) $10,000 C) $100,000 D) $1,000,000
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