The aggregate supply curve is
A)generally flatter as the level of resource use rises.
B)never vertical, even at full employment.
C)relatively flat at low levels of output.
D)relatively steep at low levels of output.

Question

Quizplus · Accepted Answer

The aggregate supply curve is relatively flat at low levels of output, indicating that at lower levels of output, increases in demand can lead to increases in output without significant increases in price levels. This is because there are often underutilized resources (like labor) that can be employed without driving up costs.

The Aggregate Supply Curve Is