All explanations for the upward slope of the short-run aggregate-supply curve suppose that output supplied increases when the price level increases more than expected.

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The upward slope of the short-run aggregate-supply curve is based on the idea of sticky wages, where nominal wages are slow to adjust to changes in the price level. This leads to a situation where firms face higher costs when the price level increases, but have not yet had to increase wages to their workers. As a result, they are willing to supply more output at higher prices in the short run, leading to an upward-sloping aggregate supply curve. This phenomenon is commonly known as the "menu costs" theory of price stickiness.

All Explanations for the Upward Slope of the Short-Run Aggregate-Supply