Because there is a ________ relationship between the price level and the quantity of real GDP supplied,the aggregate supply curve is ________ curve.
A)positive;a downward-sloping
B)positive;a vertical
C)negative;a downward-sloping
D)negative;an upward-sloping
E)positive;an upward-sloping

Question

Quizplus · Accepted Answer

The aggregate supply curve is upward-sloping because there is a positive relationship between the price level and the quantity of real GDP supplied. As prices increase, producers are willing to supply more goods and services.

Because There Is a ________ Relationship Between the Price Level