Ayushi posted an Question
August 25, 2020 • 02:17 am 30 points
  • UGC NET
  • Economics

As the economy nears full capacity, the short-run aggregate supply curve 54. (1) becomes flatter (2) becomes steeper (3) shifts to the right (4) shifts to the l

As the economy nears full capacity, the short-run aggregate supply curve 54. (1) becomes flatter (2) becomes steeper (3) shifts to the right (4) shifts to the left

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    Nidhi taparia Best Answer

    The correct answer is (2). AS curve is assumed to be flatter initially, then becomes upward sloping and then finally as full employment is nearing, AS becomes steeper. This shows that income cannot rise any further after full employment.

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