As the ________ increases,the short-run aggregate supply curve becomes increasingly steep.

Question

Quizplus · Accepted Answer

As the price level increases, the short-run aggregate supply curve becomes increasingly steep because firms are willing to increase the quantity supplied at higher prices due to the expectation of greater profits. However, this willingness to supply more at higher prices is limited by the availability of input factors and production capacity in the short run, leading to a steeper slope on the short-run aggregate supply curve.

As the ________ Increases,the Short-Run Aggregate Supply Curve Becomes Increasingly