An aggregate supply curve with a positive slope is associated with an economy in which:
A) input prices and final goods prices always change by the same amount.
B) firms expect output prices to be unaffected by changes in input prices.
C) nominal wages and salaries do not change much in the short run.
D) firms expect consumer demand to be unaffected by changes in prices of final goods.

Question

​ An aggregate supply curve with a positive slope is associated with an economy in which:
A) ​input prices and final goods prices always change by the same amount.
B) ​firms expect output prices to be unaffected by changes in input prices.
C) ​nominal wages and salaries do not change much in the short run.
D) ​ firms expect consumer demand to be unaffected by changes in prices of final goods.

Quizplus · Accepted Answer

An aggregate supply curve with a positive slope is typically associated with the short-run aggregate supply curve, where nominal wages and other input prices do not adjust immediately to changes in the price level. This leads to an upward sloping curve because firms are willing to produce more as the prices of their final goods increase, given that their input costs (like wages) are slow to adjust.

​ an Aggregate Supply Curve with a Positive Slope Is

an Aggregate Supply Curve with a Positive Slope Is