The short-run aggregate supply curve
A) has a negative slope.
B) is vertical.
C) is horizontal.
D) has a positive slope.

Name: The short-run aggregate supply curve A) has a negative slope. B) is vertical. C) is horizontal. D) has a positive slope.
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Question

Quizplus · Accepted Answer

The short-run aggregate supply curve has a positive slope because, in the short run, as the price level increases, firms are willing to produce more due to higher profit margins.

The Short-Run Aggregate Supply Curve