The short- run aggregate supply curve
A) is vertical.
B) has a positive slope.
C) has a negative slope.
D) is horizontal.

Name: The short- run aggregate supply curve A) is vertical. B) has a positive slope. C) has a negative slope. D) is horizontal.
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Question

Quizplus · Accepted Answer

The short-run aggregate supply curve has a positive slope because, in the short run, as the price level increases, the quantity of goods and services that firms are willing to supply also increases due to factors like fixed nominal wages and prices.

The Short- Run Aggregate Supply Curve