If the price level kept increasing,the short-run aggregate supply curve would get ________ because there are limits to how long workers can work long hours and capital can go without proper maintenance.
A)flatter
B)steeper
C)indefinite
D)vertical

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve would get steeper because in the short-run, there are limits to how much output can be produced due to constraints on input factors such as labor and capital. As the price level increases, firms face higher costs for inputs, leading to a decrease in profitability and a reduction in the quantity of goods and services supplied at each price level. Eventually, firms will exhaust their ability to increase output due to limitations on labor and capital, causing the short-run aggregate supply curve to become steeper.

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