The short-run Aggregate Supply curve is upward sloping only because we assume that resource costs are held .
A)constant
B)flexible
C)need more information
D)none of the above

Question

Quizplus · Accepted Answer

The short-run Aggregate Supply curve is upward sloping because it is assumed that resource costs, such as wages and prices of raw materials, are held constant. This assumption allows for output to increase with rising prices, as firms are more willing to produce more goods when prices rise, assuming their costs do not change.

The Short-Run Aggregate Supply Curve Is Upward Sloping Only Because