The aggregate supply curve slopes upward because firms

a. seek to maximize profits and output.
b. normally can purchase inputs at fixed prices.
c. employ technology, which is always fixed.
d. purchase inputs whose prices rise as output rises.

b

Economics

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If the Ricardo-Barro effect occurs, an ________ in saving finances the government budget deficit and the real interest rate ________

A) increase; remains the same B) decrease; increases C) increase; falls D) decrease; remains the same

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Given a market equilibrium point, explain, using the concepts of demand and supply, how it is achieved

What will be an ideal response?

Economics