An upward-sloping aggregate supply curve indicates that
A) higher prices lead to less consumption.
B) higher prices lead to increased production.
C) lower prices lead to increased production.
D) the amount of real GDP produced falls as prices increase.
E) lower prices decreases the supply of labor.

Question

Quizplus · Accepted Answer

An upward-sloping aggregate supply curve indicates that as prices increase, producers are willing and able to supply more goods and services, hence, higher prices lead to increased production.

An Upward-Sloping Aggregate Supply Curve Indicates That