The aggregate supply curve is upward sloping _____.
A) in the long run
B) in the short run
C) when the marginal cost of production is high
D) when wages rise faster than inﬂation

Question

Quizplus · Accepted Answer

In the short run, the aggregate supply curve is upward sloping because as prices increase, firms are willing and able to produce and sell more goods, due in part to the inflexibility of wages and the costs of production in the short term.

The Aggregate Supply Curve Is Upward Sloping _____