The aggregate supply curve shows for each price level the
A)total amount of money supply at each price level.
B)amount of frictional unemployment that will occur.
C)amount of structural unemployment that will occur.
D)quantity of goods and services that businesses are willing to produce.

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the quantity of goods and services that businesses are willing to produce at each price level. It is a graphical representation of the relationship between the price level and the level of aggregate output that firms in an economy are willing and able to supply. The aggregate supply curve is upward sloping in the short run, indicating that higher prices lead to increased production, while in the long run, it is vertical, implying that only potential GDP can be produced, regardless of the price level.

The Aggregate Supply Curve Shows for Each Price Level the