Which of the following must be present in order for the aggregate supply curve to form an upward slope?
a. constant price level for intermediate goods and services
b. rise in aggregate quantity of supplied goods and services
c. fixed cost of inputs combined with rising prices for outputs
d. the lure of higher profits to induce continued production

Question

11-04-2022
Business

contestada

Which of the following must be present in order for the aggregate supply curve to form an upward slope?
a. constant price level for intermediate goods and services
b. rise in aggregate quantity of supplied goods and services
c. fixed cost of inputs combined with rising prices for outputs
d. the lure of higher profits to induce continued production

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Tundexi Tundexi · Answer 1 · 2022-04-22T11:32:37+02:00

The fixed cost of inputs combined with rising prices for outputs is the item that must be present for the aggregate supply curve to form an upward slope.

What is the aggregate supply curve?

The supply curve on the supply graph depict the total quantity of goods and services that is supplied by all producers in country.

When an upward slope is formed on am aggregate supply curve, its shows positive relationship between price level and real GDP in the short run.

Therefore, the Option C is correct.

Read more about aggregate supply curve

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