1. Home
  2. What Is Aggregate Production Curve

What Is Aggregate Production Curve

Example. In the short-term, the aggregate supply curve follows the pattern of the individual supply curves, which is upward sloping. This happens because as the prices rise, consumers spend less money because of the higher costs. At the lower levels of consumer demand, producers supply a greater amount of output due to the law of diminishing returns, thereby keeping the average price stable.

Send Email:[email protected]

Send Message Chat Online