The short-run aggregate supply curve is upward sloping because in the short run,costs of many factors that go into producing goods and services are ________,meaning that the price for a unit of output will ________ relative to input prices and the profit per unit will rise.
A)fixed; rise
B)fixed; fall
C)flexible; rise
D)flexible; fall

Question

Quizplus · Accepted Answer

In the short run, many input costs are fixed, meaning that when the price for a unit of output rises, it increases relative to these fixed input prices, leading to higher profit per unit and an upward-sloping aggregate supply curve.

The Short-Run Aggregate Supply Curve Is Upward Sloping Because in the Short