The aggregate supply curve (short run) is upsloping because
A)wages and other resource prices match changes in the price level.
B)the price level is flexible upward but inflexible downward.
C)per-unit production costs rise as the economy moves toward and beyond its full-employment real output.
D)wages and other resource prices are flexible upward but inflexible downward.

Question

Quizplus · Accepted Answer

In the short run, as the economy approaches full employment, resources become scarcer, leading to higher per-unit production costs, which causes the aggregate supply curve to slope upwards.

The Aggregate Supply Curve (Short Run) Is Upsloping Because