Why does the short-run aggregate supply curve slope upward? ...

[Beheh]

Why does the short-run aggregate supply curve slope upward?
 
  What will be an ideal response?

Question 2

When calculating GDP, the Bureau of Economic Analysis revises its quarterly data
 
  A) a total of one time. B) many times over the next several years.
  C) a total of three times. D) a total of two times.

[nital]

Answer to Question 1

The short-run aggregate supply curve slopes upward because as the prices of final goods and services rise, the prices of inputs rise more slowly. The higher price level increases profits and the willingness of firms to supply more goods and services. A secondary reason the SRAS slopes upward is that, as the price level rises, some firms are slow to adjust their prices. A firm that raises its prices slowly when the price level increases may find that its sales increase and therefore will increase production.

Answer to Question 2

B

[Beheh]

Correct answers!

[nital]

Great! Please up vote