In the short run, the aggregate supply curve is
A) vertical.
B) downward sloping.
C) horizontal.
D) upward sloping.

Question

Quizplus · Accepted Answer

In the short run, firms may not be able to adjust their production level to meet changes in demand due to factors such as fixed costs and sticky wages. As a result, the aggregate supply curve is usually upward sloping in the short run, indicating that higher prices lead to greater output levels.

In the Short Run, the Aggregate Supply Curve Is