When is the aggregate supply curve upward sloping rather than vertical?
A)in the short and the long run
B)in neither the short run nor long run
C)in the long run, but not in the short run
D)in the short run, but not in the long run

Question

Quizplus · Accepted Answer

In the short run, the aggregate supply curve can be upward sloping due to sticky wages and prices, which means that they do not adjust immediately to changes in demand or supply. However, in the long run, wages and prices can fully adjust, resulting in a vertical aggregate supply curve.

When Is the Aggregate Supply Curve Upward Sloping Rather Than