The short-run aggregate supply curve is relatively flat to the left of the full-employment

output because resources are difficult to bring into production.

there are shortages of capital.

there are large amounts of unused capacity and idle human resources.

there are shortages of labor.

Question

Peyton Wong

Business

30 July, 17:41

The short-run aggregate supply curve is relatively flat to the left of the full-employment

output because resources are difficult to bring into production.

there are shortages of capital.

there are large amounts of unused capacity and idle human resources.

there are shortages of labor.

+2

Answers (1)

Know the Answer?

Beckett Velez · Answer 1

There are large amounts of unused capacity and idle human resources.

Explanation:

The curve is flat because there are large amounts of unused capacity and idle human resources. When the economy is operating to the left of full employment it means that is not utilizing all it's resources and not fulfilling its potential, because of this the economy has lots of idol capacity and resources and they are available for cheap, the reason for this is that the resources are abundant and thus very cheap so this makes the left of the full employment short run aggregate supply curve relatively flat.

The short-run aggregate supply curve is relatively flat to the left of the full-employmentoutput because resources are difficult to bring into production.there are shortages of capital.there are large amounts of unused capacity and idle human resources.there are shortages of labor.

The short-run aggregate supply curve is relatively flat to the left of the full-employment

output because resources are difficult to bring into production.

there are shortages of capital.

there are large amounts of unused capacity and idle human resources.

there are shortages of labor.