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:

Organizational Members

Employees or stakeholders who actively participate in the organization's processes and activities.

Interaction and Coordination

The process by which individuals or groups communicate and work together effectively to achieve a common goal.

Strategic Priority

A critical area or action that an organization identifies as essential to its success and allocates resources towards achieving.

Innovation

The process of creating and implementing new ideas, products, or methods to improve and solve problems.