The steeper the slope of the aggregate supply curve in the long run indicates that an increase in aggregate demand will cause an increase in the price level and an even greater increase in output in the long run.

Question

Quizplus · Accepted Answer

The steeper the slope of the aggregate supply curve in the long run, the less responsive output is to changes in aggregate demand. This means that an increase in aggregate demand will cause a larger increase in the price level and a smaller increase in output in the long run.

The Steeper the Slope of the Aggregate Supply Curve in the Long