an upwardsloping aggregated supply curve indicates that a a

an upward-sloping aggregated supply curve indicates that

(a) a lower prices increase the supply of labor

(b)the amount of real GDP produced falls as prices increase

(c) higher prices lead to increased production

(d)higher prices lead to less consumption

(e) lower prices lead to increased production

Solution

(c) higher prices lead to increased production

The AS curve is being made by using a nominal variable like the nominal wage rate. The nominal wage rate is fixed. which results an increase in price reults the higher profits so it leads the expansion of ouput that is the increase in production.