The short-run aggregate supply curve is upsloping because higher price levels:

A. lower interest rates and encourage firms to invest and produce more.
B. create incentives to expand output when resource prices are unresponsive to price-level
changes.
C. encourage importation of foreign goods.
D. create an expectation among producers of still higher price levels.


B. create incentives to expand output when resource prices are unresponsive to price-level
changes

Economics

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Economics