12. The equation: quantity of output supplied = natural rate of output + a(actual price level - expected price level), where a i

Question

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12. The equation: quantity of output supplied = natural rate of output + a(actual price level - expected price level), where a i

s a positive number, represents a. an upward-sloping short-run aggregate supply curve b. a vertical short-run aggregate supply curve c. a downward-sloping aggregate demand curve d. None of the above is correct.

Business

1 answer:

PtichkaEL [24] · Answer 1 · 2022-06-07T02:05:30+03:00

Answer:a. an upward-sloping short-run aggregate supply curve

Explanation:

variable a represent an upward sloping short run aggregate supply curve.

The slope of the supply curve is positive which tells us that the quantity supplied has a positive relationship with Price.When price increases the quantity supplied will increase because the law of supply states that more quantity is supplied at a higher price