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 workers at fixed wages for short-run periods.

Question

Quizplus · Accepted Answer

The aggregate supply curve slopes upward because, in the short run, firms can hire workers at fixed wages, allowing them to increase production as prices rise without immediately increasing wages.

The Aggregate Supply Curve Slopes