Answer to Question #226184 in Macroeconomics for ramya

Question

) List some empirical examples to support each theory which explains why the short-run aggregate supply curve is upward sloping. 

Answer 1

The quantity supplied grows as the price rises, the short-run aggregate supply curve is upward sloping. Firms have one fixed factor of production in the short run (usually capital ). At a given price, the curve shifts outward, increasing output and real GDP.