In the short-run
A) the aggregate supply curve is upward sloping.
B) real GDP is always equal to potential GDP.
C) the money wage rate can change.
D) the price level does not change.

Question

Quizplus · Accepted Answer

In the short-run, the aggregate supply curve is upward sloping because as the price level increases, producers are willing and able to supply more goods and services, partly due to nominal wage rigidity.

In the Short-Run