The short-run aggregate supply curve slopes

Question

a. downward because firms can sell more, and hence, will produce more when prices are lower
b. downward because firms find it costs less to purchase labor and other inputs when price are lower, and hence they produce more
c. upwards because when the price level rises, output prices rise relative to input prices (costs), raising profit margins and increasing production and sales
d. upward because firms find it cots more to purchase labor and other inputs when prices are higher, and hence they must produce and sell more in order to make a profit

Answer 1

Answer: c. upwards because when the price level rises, output prices rise relative to input prices (costs), raising profit margins and increasing production and sales