In the Upward-Sloping Range of the Short-Run Aggregate Supply Curve

Multiple Choice

In the upward-sloping range of the short-run aggregate supply curve, firms are willing to supply more output when the overall price level increases because:

A) nominal wages are sticky, so an increase in the price level increases the profit earned by firms.
B) real wages are sticky, so an increase in the price level increases the profits earned by firms.
C) firms can employ better technology at a higher price level and produce more output.
D) more workers are willing to work at a higher price level, so firms can produce more output.