The steepness of the aggregate supply curve schedule depends on the time frame.

Question

Quizplus · Accepted Answer

In the short run, the aggregate supply curve is upward-sloping and relatively steep, indicating that changes in demand lead to changes in prices and output in the economy. In the long run, the aggregate supply curve is flatter and more elastic, indicating that changes in demand have a limited impact on prices and output in the economy. Therefore, the steepness of the aggregate supply curve schedule depends on the time frame.

The Steepness of the Aggregate Supply Curve Schedule Depends on the Time