The short-run aggregate supply curve slopes upward because,with a given equilibrium wage rate,a higher actual price level will
A)reduce the actual real wage and induce firms to hire more labor.
B)shift the labor supply curve.
C)increase the aggregate demand for goods,so that output will rise.
D)All of these.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve slopes upward because a higher actual price level will reduce the real wage, which will induce firms to hire more labor, increasing output without increasing costs.

The Short-Run Aggregate Supply Curve Slopes Upward Because,with a Given