The short-run aggregate supply curve is steeper at outputs above the full-employment output. This is because the economy's available resources are already employed and adding more workers to a fixed number of capital resources reduces the efficiency of workers leading to rising per-unit production costs. total input costs begin to decline at production amounts beyond full-employment output. capital, but not labor, costs increase when producing beyond full-employment output. costs associated with foreign currency exchange increase when producing beyond full-employment output