The Short-Run Aggregate Supply Curve (SRAS) Slopes Upward to the Right

Multiple Choice

The short-run aggregate supply curve (SRAS) slopes upward to the right because unexpected increases in prices will

A) increase aggregate demand as consumers buy more.
B) decrease aggregate demand as consumers buy less.
C) cause firms to expand output since the higher product prices will improve profitability.
D) cause firms to reduce output since the higher product prices will decrease profit margins.