What is the difference between a change in aggregate supply and a change in aggregate output supplied?
A) A change in aggregate supply is represented by a movement along the aggregate supply curve in response to a price change, while a change in aggregate output supplied is represented by a shift of the aggregate supply curve in response to a change in a determinant of aggregate supply other than the price level.
B) A change in aggregate supply is represented by a shift of the aggregate supply curve in response to a change in the actual price level, while a change in aggregate output supplied is represented by a movement along the aggregate supply curve in response to a change in the expected price level.
C) A change in aggregate supply is represented by a shift of the aggregate supply curve in response to a change in a determinant of aggregate supply other than the price level, while a change in aggregate output supplied is represented by a movement along the aggregate supply curve in response to a change in the price level.
D) There is no difference between the two terms.

Question

Quizplus · Accepted Answer

A change in aggregate supply is caused by a change in a determinant of aggregate supply other than the price level, such as changes in technology, input prices, and taxes. This causes a shift of the aggregate supply curve. On the other hand, a change in aggregate output supplied is caused by a change in the price level, resulting in a movement along the aggregate supply curve. Therefore, the correct choice is C, as it accurately describes the difference between the two terms.

What Is the Difference Between a Change in Aggregate Supply