If the price level kept increasing,the ________ would get steeper because there are limits to how long workers can work long hours and capital can go without proper maintenance.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve would get steeper because in the short run, there are limits to how much workers can work overtime and capital can go without proper maintenance. As the price level increases, firms may increase production in the short run, but eventually, their output will be limited by factors such as worker fatigue and machinery breakdown. Therefore, the short-run aggregate supply curve becomes steeper as the price level increases.

If the Price Level Kept Increasing,the ________ Would Get Steeper