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

question 234

Multiple Choice

If the price level kept increasing, the short-run aggregate supply (SRAS) curve would get steeper because

• A) all the unemployed would eventually be hired.
• B) there are limits to how long workers can work long hours and capital can go without proper maintenance.
• C) the rate at which capacity can be expanded increases indefinitely.
• D) the long-run aggregate supply curve is horizontal.