If the price level kept decreasing,the short-run aggregate supply curve would get ________ because we could hire any and all resources at the going rate without increasing prices or the price of inputs.
A)steeper
B)flatter
C)indefinite
D)vertical

Question

Quizplus · Accepted Answer

If the price level kept decreasing, the short-run aggregate supply curve would get flatter because lower prices would mean that producers could hire resources without having to raise prices, indicating a more elastic (or flatter) supply response to changes in demand.

If the Price Level Kept Decreasing,the Short-Run Aggregate Supply Curve