The aggregate supply curve slopes
A)downward because firms can sell more at lower prices.
B)downward because firms can hire more workers at lower prices.
C)upward because firms want to hire more workers at higher wage levels.
D)upward because firms can hire labor at fixed wages for short-run periods.

Question

Quizplus · Accepted Answer

The aggregate supply curve slopes upward in the short run because firms can hire labor at fixed wages, allowing them to increase production as prices rise, leading to higher profits.

The Aggregate Supply Curve Slopes