The Short-Run Aggregate Supply Curve Slopes

Multiple Choice

The short-run aggregate supply curve slopes:

A) ​downward because firms can sell more, and hence, will produce more when prices are lower.
B) ​downward because firms find it costs less to purchase labor and other inputs when prices are lower and hence, they produce more.
C) ​upward because firms normally can purchase some labor and other inputs at fixed costs for some period of time.
D) ​upward because firms find that it costs more to purchase labor and other inputs when prices are higher and hence they must produce and sell more in order to make a profit.