The Short-Run Aggregate Supply Curve Is Upward-Sloping Because

question 20

Multiple Choice

The short-run aggregate supply curve is upward-sloping because:

• A)higher prices discourage the producers to expand output.
• B)higher price levels create incentives to expand output when resource prices remain constant.
• C)lower prices encourage the producers to expand output.
• D)higher price levels create an expectation among producers of still higher price levels.