Author Question: The short-run aggregate supply curve is upward sloping because A) a lower price level creates a ... (Read 112 times)

joesmith1212 · **on:** Jun 29, 2018

The short-run aggregate supply curve is upward sloping because

A) a lower price level creates a wealth effect.
B) lower taxes motivate people to work more.
C) money wage rates do not immediately change when the price level changes.
D) most business firms operate with long-term contracts for output but not labor.

Question 2

Consider the market for dollars. If the exchange rate rises from 2 pesos per dollar to 4 pesos per dollar

A) the supply curve of dollars shifts leftward.
B) the supply curve of dollars shifts rightward.
C) there is an upward movement along the supply curve for dollars.
D) there is a downward movement along the supply curve for dollars.