With respect to slope,________ function is normally positively sloped.
A)aggregate demand
B)the short-run aggregate supply
C)planned aggregate expenditure
D)planned investment

Question

Quizplus · Accepted Answer

The short-run aggregate supply (SRAS) curve is normally positively sloped due to the fact that as the price level increases, firms are willing to produce more output in order to earn higher profits. This relationship is generally true in the short run, as firms may not be able to adjust all of their factors of production immediately, leading to an increase in marginal costs as output increases. As a result, a higher price level is needed to cover these increasing costs and allow firms to earn higher profits.

With Respect to Slope,________ Function Is Normally Positively Sloped