The short-run aggregate supply curve is:
A)typically vertical.
B)typically downward sloping.
C)relatively steep at low levels of output.
D)typically horizontal.
E)typically upward sloping.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve is typically upward sloping, indicating that as the price level increases, the quantity of goods and services that firms are willing to produce and sell also increases. This is due to factors like menu costs, wage stickiness, and misperceptions about relative prices.

The Short-Run Aggregate Supply Curve Is