Final answer:
The short-run aggregate supply curve slopes upward and to the right due to the positive relationship between output prices and production levels when input prices are fixed.
Step-by-step explanation:
The aggregate supply curve (short-run) slopes upward and to the right. This upward-sloping short run aggregate supply (SRAS) curve represents the positive relationship between the price level and the level of real GDP in the short run. It slopes up because an increase in the price level for outputs, while the price level of inputs remains fixed, creates an opportunity for additional profits, which in turn encourages more production. This relationship depicts that as prices rise, firms are willing and able to produce and sell more goods. While the curve is near-horizontal on the left, it becomes near-vertical on the right, indicating that there is a maximum capacity of production that the economy can achieve at full employment.