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.
Answer: B
You might also like to view...
Refer to Figure 15-13. In the figure above, if the economy in Year 1 is at point A and is expected in Year 2 to be at point B, then the appropriate monetary policy by the Federal Reserve would be to
A) lower income taxes. B) raise interest rates. C) raise income taxes. D) lower interest rates.
A positive economic statement simply describes what is
a. True b. False Indicate whether the statement is true or false
Explain how the short-run supply curve of the competitive firm is derived
Decreases in the real interest rate will result in a(n):
A. decrease in net exports because it will lead to an appreciation of the dollar. B. decrease in net exports because it will lead to a depreciation of the dollar. C. increase in net exports because it will lead to an appreciation of the dollar. D. increase in net exports because it will lead to a depreciation of the dollar.