The Short-Run Aggregate Supply Curve Is Perfectly Inelastic in the Classical

Multiple Choice

The short-run aggregate supply curve is perfectly inelastic in the classical range because:

A) large amounts of unused labor and other inputs can be obtained at no additional cost.
B) nominal wages are sticky, so firms can supply additional output at higher price.
C) input and output prices change at the same rate, so there is no incentive to produce extra output.
D) a higher price leads to lower demand, so there is no incentive to produce extra output.