A rise in the price level, everything else remaining unchanged, causes short-run aggregate supply to
A)decline.
B)not change.
C)increase.
D)rise at first, then decline later.

Question

Quizplus · Accepted Answer

A rise in the price level, everything else remaining unchanged, causes short-run aggregate supply to increase because producers are willing to supply more output at higher prices.

A Rise in the Price Level, Everything Else Remaining Unchanged