The Short-Run Aggregate Supply Curve Slopes Upward Because a _____

Multiple Choice

The short-run aggregate supply curve slopes upward because a _____ aggregate price level leads to _____.

A) higher; lower output as costs of production increase
B) higher; higher output, since most production costs are fixed in the short run
C) lower; higher output, since production costs tend to fall in the short run
D) lower; higher profit and higher productivity