The Main Reason Why the Economy's Aggregate Supply Curve Slopes

question 111

Multiple Choice

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.

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Definitions:

Mechanistic Organizations

Highly structured, formal organizations with clear hierarchies and rigid procedures, often compared to a machine in their operation.

Changing Environment

denotes the dynamic landscape organizations operate within, necessitating adaptability in strategies and practices to remain competitive.

Organizations

Structures or systems where individuals collectively work to achieve a common goal or set of goals.

Individual Resistance

Opposition or reluctance by a person to accept change, adhere to regulations, or adopt new ideas or methods.