At levels of output close to full employment, the aggregate supply curve is probably
A)very flat.
B)very steep.
C)sloped downward.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

At levels of output close to full employment, the aggregate supply curve is likely to be very steep because it becomes increasingly difficult and expensive to produce additional units of output beyond full employment levels. As resources become scarce, the cost of production rises significantly, causing the aggregate supply curve to become steeper.

At Levels of Output Close to Full Employment, the Aggregate