Moving along the aggregate supply curve, when the price level rises, the
A)the quantity supplied decreases.
B)the quantity supplied increases.
C)the aggregate demand curve shifts rightward.
D)the aggregate demand curve shifts leftward.
E)quantity supplied does not change because the aggregate supply curve is a vertical line.

Question

Quizplus · Accepted Answer

When the price level rises, the quantity supplied increases along the aggregate supply curve, as firms are willing to produce more at higher prices.

Moving Along the Aggregate Supply Curve, When the Price Level