The short-run aggregate supply curve _____
A) is positively sloped.
B) is negatively sloped.
C) is a vertical line parallel to the price level axis.
D) is a horizontal line parallel to the output axis.
E) is a ray from the origin with a slope exactly equal to 1.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve is positively sloped because, in the short run, as prices increase, the quantity of goods and services that firms are willing to produce and sell typically increases, due to factors like increased profitability and utilization of existing capacity.

The Short-Run Aggregate Supply Curve _____