Answer to Question #227367 in Economics for Navodya

Question

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

Answer 1

The short-run aggregate supply curve is upward sloping because the quantity supplied increases when the price rises. In the short-run, firms have one fixed factor of production (usually capital). When the curve shifts outward the output and real GDP increase at a given price.