One explanation for why the AS curve slopes upward is that when the output level rises,producers experience increased costs such as higher wages.

Name: One explanation for why the AS curve slopes upward is that when the output level rises,producers experience increased costs such as higher wages.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

As the output level rises, the demand for inputs, such as labor, also increases, causing wages and other costs to rise. This leads to a higher price level and thus an upward-sloping AS curve.

One Explanation for Why the AS Curve Slopes Upward Is