Along which segment of the short-run aggregate supply curve does an economy obtain its full employment level of output?
The amount of total output that will be generated at each price level in the near term is depicted by the upward-sloping short-run aggregate supply curve. The rising slope of the short-run aggregate supply curve is explained by wage and price stickiness.
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The quantity of overall output that will be generated at each price level in the short run is represented by an upward-sloping curve called the short-run aggregate supply curve. The rising slope of the aggregate supply curve over the short term is explained by wage and price stickiness. A rise in demand (and prices) in the short run causes aggregate supply to employ more of the present inputs in production. Short-term capital constraints prevent a business from, for instance, building a new facility or implementing new technologies to boost production efficiency.
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