Most economists believe that the short-run aggregate supply curve
A)slopes down.
B)slopes up.
C)is a vertical line.
D)is a horizontal line.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve slopes upward because, in the short run, an increase in the price level leads to an increase in the quantity of goods and services supplied, assuming other factors remain constant. This is due to factors like menu costs, wage stickiness, and misperceptions about relative prices.

Most Economists Believe That the Short-Run Aggregate Supply Curve