The short- run aggregate supply curve
A) shifts because of changes in the price level.
B) shows the impact changes in the price level have on the quantity of real GDP when resource prices are constant.
C) illustrates the level of potential real GDP.
D) is vertical.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shows the impact changes in the price level have on the quantity of real GDP when resource prices are constant. It is subject to shift due to various factors affecting resource prices.

The Short- Run Aggregate Supply Curve