The short-run aggregate supply curve
A)becomes flatter at output levels above the full-employment output.
B)becomes steep at output levels above the full-employment output.
C)is upward-sloping with a constant slope.
D)is horizontal.

Question

Quizplus · Accepted Answer

In the short run, as output exceeds full-employment levels, resources become scarce, leading to higher costs and prices, making the aggregate supply curve steeper.

The Short-Run Aggregate Supply Curve