During periods of high inflation, the short-run aggregate supply curve is:
A) vertical.
B) horizontal.
C) upward sloping.
D) downward sloping.

Name: During periods of high inflation, the short-run aggregate supply curve is: A) vertical. B) horizontal. C) upward sloping. D) downward sloping.
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Question

Quizplus · Accepted Answer

During periods of high inflation, firms are more likely to increase output in response to higher prices, leading to an upward-sloping short-run aggregate supply curve.

During Periods of High Inflation, the Short-Run Aggregate Supply Curve