Which of the following is true about the short-run aggregate supply curve.
Select the correct answer below:
A. It is vertical
B. It is always a horizontal line
C. It is downward sloping
D. It is upward sloping

Respuesta :

Answer:

The correct answer is letter "D": It is upward sloping.

Explanation:

The short-run Aggregate Supply Curve is upward sloping because it establishes a directly proportional relationship between quantity supplied and prices. It means, as soon as the quantity supplied increases so will the price. Besides, it considers production has a fixed factor which in most cases is capital.