Case Interview Prep

Answer: D - In an SRAS curve, an upward turn results in an increase in output but no increase in price.

Key Takeaway: In a short run aggregate supply (SRAS), the economy experiences a period when resources are underused and staff can be hired without capital investment. An upward turn in an SRAS curve means that there is an increase in product output but no matching increases in price levels which means that the curve becomes horizontal.