-In the above figure, the short-run aggregate supply curve is SAS₁. Suppose that the price level in the economy increases. As a result there is A) an upward movement along SAS₁. B) a shift to SAS₂. C) a downward movement along SAS₁. D) a shift to SAS₀.

Question

Quizplus · Accepted Answer

An increase in the price level typically results in an upward movement along the existing short-run aggregate supply curve, SAS₁, rather than a shift of the curve itself.

-In the Above Figure, the Short-Run Aggregate Supply Curve Is