In the short run, diminishing returns can help to explain why the aggregate supply curve slopes upwards.

Name: In the short run, diminishing returns can help to explain why the aggregate supply curve slopes upwards.
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Diminishing returns occur when adding more of a variable input to a fixed input results in smaller increases in output, leading to higher costs and prices, which causes the aggregate supply curve to slope upwards in the short run.

In the Short Run, Diminishing Returns Can Help to Explain