The dynamic aggregate supply curve illustrates a short-run _____ relationship between output and _____.
A) positive; inflation
B) positive; the price level
C) negative; inflation
D) negative; the price level

Question

Quizplus · Accepted Answer

The dynamic aggregate supply curve shows a positive relationship between output and inflation in the short run, meaning as output increases, inflation tends to increase as well.

The Dynamic Aggregate Supply Curve Illustrates a Short-Run _____ Relationship