Question: please give correct answer i have confusion in 2 and 3 option Why is the AS curve upward-sloping? Because, since nominal wages increase when production

please give correct answer i have confusion in 2 and 3 option

Why is the AS curve upward-sloping? Because, since nominal wages increase when production rises, then so too must the price level Higher prices increase the demand and therefore the quantity supplied must also increase A higher price means higher total profits and therefore firms will produce more Higher prices mean higher real wages and therefore firms must produce more to in order to maintain profit levels

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