Proponents of the real business cycle model argue that the short-run aggregate supply curve is positively sloped.
The short-run aggregate supply curve is upward or positively sloping and it represents the positive relationship between the price level and output. The short-run is when all production occurs in real time.
The short-run aggregate supply curve (SRAS) shows us that a higher price level leads to more output. It also lets us capture how all of the firms in an economy respond to price stickiness. Thus, when prices are sticky, the SRAS curve will slope upward.
Hence, the short-run aggregate supply curve will be positively sloped.
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