The short-run aggregate supply curve has:

A. Negative slope

B. Positive Slope

C. Vertical Slope

D. Horizontal Slope

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Divya SinghLv10

10 Nov 2020

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Explain why the long-run aggregate-supply curve is vertical and short-run aggregate supply curve slope upward.

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Give a decreasing cost industry example. Assume that the short-run average total cost curve for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will have which of the following?

a) a positive slope

b) a negative slope

c)be perfectly horizontal

d) be perfectly vertical