The main reason why the short-run aggregate supply curve slopes upward is that as the average price level increases, larger scales of production become more profitable

In the long run, perfectly competitive firms make zero economic profit, that is, their owners make a normal profit

Indicate whether the statement is true or false

When the money supply rises by 10%, in the short run, output ________ and the price level ________

A) rises; is unchanged B) declines; falls C) is unchanged; falls D) declines; is unchanged