The short-run aggregate supply curve has a
A)negative slope.
B)positive slope.
C)slope equal to infinity.
D)slope equal to zero.
E)indeterminate slope.

Question

Quizplus · Accepted Answer

The short-run aggregate supply (SRAS) curve shows the relationship between the price level and the quantity of real GDP supplied in the short run. The SRAS has a positive slope because in the short run, firms can increase production and supply in response to higher prices, leading to a higher quantity supplied. However, this relationship may not hold in the long run as factors such as wages and resource availability adjust to changes in aggregate demand.

The Short-Run Aggregate Supply Curve Has a