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

question 136

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 the above are correct.

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Definitions:

Lev Vygotsky

A Russian psychologist known for his work on cognitive development, particularly the socio-cultural theory which emphasizes the role of social interaction in the development of cognition.

Cognitive Development

The construction of thought processes, including remembering, problem-solving, and decision-making from childhood through adolescence to adulthood.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, laws, and personal beliefs.

Emotional Attachment

The emotional bond that forms between individuals, influencing their relationships and behaviors towards each other.