In the Short Run, the Aggregate Supply Curve Is Relatively

Multiple Choice

In the short run, the aggregate supply curve is relatively flat because at any point in time:

A) firms are assumed to supply all the output demanded with relatively small changes in prices.
B) the labor costs faced by firms are slower to adjust than final prices.
C) technology advances faster than production costs.
D) firms can not face increases in the output demanded without experiencing small reductions in profits.