If firms are willing to produce and sell more output when prices rise,this implies
A)an upward-sloping short-run aggregate supply curve.
B)a vertical short-run aggregate supply curve.
C)an upward-sloping aggregate demand curve.
D)a horizontal aggregate supply curve.

Question

Quizplus · Accepted Answer

An upward-sloping short-run aggregate supply curve implies that firms are willing to produce and sell more output when prices rise. This is because higher prices increase the profitability of production, making it more attractive for firms to increase output.

If Firms Are Willing to Produce and Sell More Output