Asked by
Esmeralda Lozano
on Nov 11, 2024
Verified
Which of the following is true of the short-run aggregate supply curve?
A) It shows the relation between the inflation rate and the quantity of aggregate output firms supply,other things constant.
B) It shows the relation between the price of labor and the aggregate quantity of labor workers supply,other things constant.
C) It shows the relation between the interest rate and the quantity of capital goods firms supply,other things constant.
D) It shows the relation between the price level and the quantity of aggregate output firms supply,other things constant.
E) It shows an inverse relationship between the price level and real GDP.
Short-Run Aggregate Supply
The total supply of goods and services that firms in an economy plan on selling during a short time period, given the current price levels.
Aggregate Output
The total quantity of goods and services produced in an economy over a given period, often considered synonymous with real GDP.
Price Level
The standard price level of the wide variety of goods and services in the economy.
- Analyze the factors that determine the short-run aggregate supply curve.
Verified Answer
AD
Learning Objectives
- Analyze the factors that determine the short-run aggregate supply curve.