The slope of the aggregate supply curve shows that,all else the same,the
A)price level remains constant as potential GDP increases.
B)quantity of real GDP supplied increases as the price level increases.
C)quantity of real GDP supplied remains constant as the price level increases.
D)quantity of real GDP supplied decreases as the price level increases.
E)price level remains constant as real GDP increases.

Question

Quizplus · Accepted Answer

The slope of the aggregate supply curve is positive, indicating that as the price level increases, the quantity of real GDP supplied also increases. This is because as prices rise, firms are incentivized to increase production to take advantage of the higher prices, leading to an increase in the quantity of goods and services supplied.

The Slope of the Aggregate Supply Curve Shows That,all Else