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Case Interview Prep

Category - Economics

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The short run aggregate supply (SRAS) curve is graphed:
  1. as a sloping upward line
  2. is steeper below full employment than above it
  3. as a horizontal line
  4. with consumer personal income against product quantity
Explanation
Answer: C - The short run aggregate supply (SRAS) curve is graphed as a horizontal line.

Key Takeaway: In a short run aggregate supply (SRAS), an upward turn in the curve means that raw and manufactured product quantities increase but price levels remain constant. This means that the curve becomes increasingly horizontal.
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