Which aggregate supply curve has a positive slope?
A)long run only
B)short run only
C)both long run and short run
D)neither long run nor short run

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve has a positive slope because, in the short run, prices of inputs (like wages) are sticky or slow to adjust, allowing producers to increase output in response to higher demand, which raises the price level. In contrast, the long-run aggregate supply curve is vertical, reflecting that in the long run, output is determined by factors other than the price level, such as technology and resources.

Which Aggregate Supply Curve Has a Positive Slope