The short-run aggregate supply curve has a
A)negative slope.
B)positive slope.
C)slope equal to infinity.
D)slope equal to zero.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve has a positive slope, which means that as the price level increases, firms are willing to supply more output due to the profit incentive to increase production. Conversely, as the price level decreases, firms are willing to supply less output. This relationship between price level and quantity supplied is represented by a positive slope.

The Short-Run Aggregate Supply Curve Has a