ECONOMICS
AGGREGATE SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes, I understand this from the notes
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No, I don’t understand this from the notes
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No, I don’t understand this, as I have not read the notes
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None of the above
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Detailed explanation-1: -The short-run aggregate supply curve is upward sloping because the quantity supplied increases when the price rises. In the short-run, firms have one fixed factor of production (usually capital ). When the curve shifts outward the output and real GDP increase at a given price.
Detailed explanation-2: -The short-run aggregate supply curve slopes upward because of: wage and price stickiness. An upward-sloping short-run aggregate supply curve indicates that increases in: the overall price level will increase the amount of aggregate output supplied by firms.
Detailed explanation-3: -The supply curve is upward sloping to show that the suppliers increase their supply of a good when the price increases and vice versa. A market supply curve is derived by horizontally adding up the individual supply curves of a good.