The SRAS curve is ____ with real output levels that ____.
A)upward sloping; vary positively with the price level
B)upward sloping; vary negatively with the price level
C)vertical; are equal to the natural level of real output at all price levels
D)vertical; can be either greater than or less than the natural level of real output

Question

The SRAS curve is ____ with real output levels that ____.
A)​upward sloping; vary positively with the price level
B)​upward sloping; vary negatively with the price level
C)​vertical; are equal to the natural level of real output at all price levels
D)​vertical; can be either greater than or less than the natural level of real output

Quizplus · Accepted Answer

The SRAS (Short-Run Aggregate Supply) curve is upward sloping because, in the short run, as the price level increases, producers are willing and able to produce and sell more goods and services, leading to a positive relationship between the price level and the quantity of output produced.

The SRAS Curve Is ____ with Real Output Levels That