The aggregate supply curve shows the relationship between the _____ and the quantity of aggregate output supplied.
A) price of oil
B) aggregate price level
C) price of money
D) level of employment

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the relationship between the aggregate price level and the quantity of aggregate output supplied. This means that as the aggregate price level increases, firms are willing to supply more output, while as the aggregate price level decreases, firms are willing to supply less output. The price of oil, price of money, and level of employment may all affect aggregate supply in different ways, but they are not the primary factors that the aggregate supply curve is based on.

The Aggregate Supply Curve Shows the Relationship Between the _____