Illustrates the positive relationship between real output and the price level.
Below is an illustration of the SRAS curve. It is upward sloping because if real output increases, more goods need to be produced but this can only occur if the price level rises. This is because production costs rise when output rises. So for more goods to be supplied this will require the price level in the economy to rise, as the higher production costs are passed onto the consumer in the form of higher prices.
