The aggregate supply curve slopes upward because as price rises, the quantity of output supplied rises.

Question

Quizplus · Accepted Answer

The upward slope of the aggregate supply curve reflects the positive relationship between the price level and the quantity of output supplied by firms. As the price level increases, firms are incentivized to produce more output to maximize their profits, leading to a higher quantity of goods and services supplied in the economy.

The Aggregate Supply Curve Slopes Upward Because as Price Rises