Question:
The short run aggregate supply curve
(1) slopes downward and to the right.
(2) slopes upward and to the right.
(3) graphs as a horizontal line.
(4) graphs as a vertical line.
(5) is steeper below the full employment output.
Correct Answer:
(2)
Answer Explanation:
In macroeconomic theory, the Short-Run Aggregate Supply (SRAS) curve slopes upward and to the right. This reflects the reality that in the short run, as the general price level rises, firms find it profitable to expand production because their input costs (like wages) remain relatively sticky or fixed.
Topic: Macroeconomics Year: 2019
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