12. The equation: quantity of output supplied = natural rate of output + a (actual price level - expected price level), where a is a positive number, represents a. an upward-sloping short-run aggregate supply curve b. a vertical short-run aggregate supply curve c. a downward-sloping aggregate demand curve d. None of the above is correct.

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Business

Deja Levy

30 May, 06:59

12. The equation: quantity of output supplied = natural rate of output + a (actual price level - expected price level), where a is a positive number, represents a. an upward-sloping short-run aggregate supply curve b. a vertical short-run aggregate supply curve c. a downward-sloping aggregate demand curve d. None of the above is correct.

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Quintin Guerra · Answer 1

Answer:a. an upward-sloping short-run aggregate supply curve

Explanation:

variable a represent an upward sloping short run aggregate supply curve.

The slope of the supply curve is positive which tells us that the quantity supplied has a positive relationship with Price. When price increases the quantity supplied will increase because the law of supply states that more quantity is supplied at a higher price