Gordon Suggests That Full Indexation of Production Costs to Nominal

Multiple Choice

Gordon suggests that full indexation of production costs to nominal AD would solve the macroeconomic externality.However,individual firms would be unlikely to extend full indexation to their workers because

A) its local customers may not buy its products at the new price level.
B) its suppliers may reside in foreign countries and are therefore,not subject to indexation.
C) other competitor firms will not index their wages.
D) All of the above.