If the SRAS curve is positively sloped,then an increase in the demand for Canadian-made goods in Europe will lead to ___________ in the price level,in the short run.

Question

Quizplus · Accepted Answer

If the SRAS (Short Run Aggregate Supply) curve is positively sloped, it means that an increase in aggregate demand, caused by an increase in the demand for Canadian-made goods in Europe, will lead to an increase in the price level in the short run. This is because the increase in demand for goods will lead to higher production costs due to limited productive capacity, leading to higher prices.

If the SRAS Curve Is Positively Sloped,then an Increase in the Demand