The ________ curve has a positive slope because as prices of final goods and services rise, prices of inputs rise more slowly.
A)short-run aggregate supply
B)long-run aggregate supply
C)short-run aggregate demand
D)long-run aggregate demand
E)short-run labour supply

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve has a positive slope because, in the short run, as the prices of final goods and services increase, the costs of inputs (like labor and raw materials) tend to increase more slowly. This means that producers are willing to supply more at higher prices because their profit margins increase, reflecting the delayed adjustment of input costs.

The ________ Curve Has a Positive Slope Because as Prices