The short-run aggregate supply curve slopes upward as a result of the real balance effect,the interest rate effect,and the international trade effect.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve slopes upward primarily due to factors like wage stickiness, misperceptions about relative prices, and short-term adjustments in production. The real balance effect, the interest rate effect, and the international trade effect are reasons why the aggregate demand curve slopes downward, not the supply curve.

The Short-Run Aggregate Supply Curve Slopes Upward as a Result