An aggregate supply curve that slopes upward must be:
A) a short-run curve.
B) a long-run curve.
C) an individual firm's supply curve.
D) an individual industry's supply curve.

Question

Quizplus · Accepted Answer

An upward-sloping aggregate supply curve represents the relationship between the overall level of prices in the short-run and the quantity of output produced by firms. As such, it cannot be a long-run curve, which reflects the economy's potential output level determined by its factors of production. It also cannot be an individual firm's or industry's supply curve, which relate only to a specific producer's output decisions.

An Aggregate Supply Curve That Slopes Upward Must Be