In the short run, the aggregate supply curve:
A) slopes upward.
B) slopes downward.
C) is perfectly elastic.
D) is perfectly inelastic.

Question

Quizplus · Accepted Answer

In the short run, firms can adjust their output levels but not their inputs, leading to a positive relationship between the price level and the quantity of aggregate output supplied. Therefore, the aggregate supply curve slopes upward.

In the Short Run, the Aggregate Supply Curve