To determine short-run equilibrium in the economy, we use an aggregate supply curve that is:
A)downward-sloping.
B)vertical.
C)upward-sloping.
D)horizontal.
E)parabolic.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve is typically upward-sloping, meaning that as the price level increases, firms are willing to produce more output due to higher demand for their goods and services. This leads to an increase in employment and income in the short-run, until the economy reaches full employment and the long-run aggregate supply curve becomes vertical.

To Determine Short-Run Equilibrium in the Economy, We Use an Aggregate