Question

Which of the following are reasons that the short-run aggregate supply curve slopes upward? Check all that apply. As the price level rises, firms find it more profitable to hire workers at any given wage. As the price level rises, firms pay higher wages for workers. As the price level rises, firms expand their production because they can sell their output for more money.

Answer 1

Answer:

As the price level rises, firms expand their production because they can sell their output for more money.

Explanation:

As the price level rises, supply increases as firms expand production to increase profits. And as price level falls, supply falls as firm reduce production. For this reason the short-run aggregate supply curve slopes upward.

Please find attached a graph showing the short-run aggregate supply curve