Which of the following is true of the short-run aggregate supply curve?
A) It has a negative slope
B) It has a vertical slope
C) It has a positive slope
D) It has a horizontal slope

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve has a positive slope, meaning that as the price level increases, the quantity of output supplied by firms also increases. This is because in the short run, firms are able to increase their production in response to higher prices, but this capacity is limited by factors such as available resources and existing technology.

Which of the Following Is True of the Short-Run Aggregate