The short-run aggregate supply curve is
A) downward sloping.
B) upward sloping.
C) vertical.
D) horizontal.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve is upward sloping because in the short run, increasing output (due to higher demand) can be accomplished by utilizing more of the current inputs, such as labor and capital, which may be underutilized at the current level of output. However, this relationship may not hold in the long run.

The Short-Run Aggregate Supply Curve Is