The aggregate supply curve is a(n) ________ curve because it represents the relationship between price level and the quantity of real GDP supplied, two items that are ________ correlated.
A) downward-sloping; negatively
B) vertical; not
C) upward-sloping; negatively
D) downward-sloping; positively
E) upward-sloping; positively

Question

Quizplus · Accepted Answer

The aggregate supply curve is upward-sloping because it represents the idea that as the price level increases, the quantity of goods and services that producers are willing to supply also increases, indicating a positive correlation between price level and the quantity of real GDP supplied.

The Aggregate Supply Curve Is A(n) ________ Curve Because It