The general shape of the short-run aggregate supply curve is:
A)upward sloping.
B)downward sloping.
C)vertical.
D)horizontal.

Question

The general shape of the short-run aggregate supply curve is:
A)​upward sloping.
B)​downward sloping.
C)​vertical.
D)​horizontal.

Quizplus · Accepted Answer

The short-run aggregate supply curve is upward sloping in the short run as firms can increase output in response to higher prices. However, in the long run, the curve becomes vertical as all factors of production become fixed and output is determined solely by the economy's ability to produce.

The General Shape of the Short-Run Aggregate Supply Curve Is