How is the short run aggregate supply curve typically characterized?

The short-run aggregate supply curve is typically characterized as upward sloping because, in the short run, as the overall price level increases, producers are willing to supply more goods and services. This relationship occurs because some input costs, such as wages and resource prices, are fixed in the short run. When prices for final goods rise, firms can cover their variable costs and make more profit, thus incentivizing them to increase production.

As firms respond to higher prices by increasing output, the quantity of aggregate supply expands. This response leads to a positive relationship between the price level and the quantity of goods and services supplied, which is visually represented by an upward slope. In contrast, a vertical slope would indicate that supply does not change with price, a condition more aligned with the long run, while downward sloping or horizontal slopes do not accurately represent the supply dynamics that occur in the short run.