-Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label AS for the aggregate supply curve?
A)Box 1
B)Box 2
C)Box 3
D)Box 4

Question

-Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label AS for the aggregate supply curve? 
A)Box 1 
B)Box 2 
C)Box 3 
D)Box 4

Quizplus · Accepted Answer

The aggregate supply curve (AS) typically slopes upwards from left to right, indicating that as prices increase, producers are willing to supply more goods and services. Box 3 is the correct position for the AS curve in a standard AD-AS model, reflecting this relationship.

-Referring to the Aggregate Demand - Aggregate Supply Diagram in Figure