The short-run aggregate supply curve (SRAS) is the amount of real GDP:
A) produced at various price levels.
B) produced at various savings rate levels.
C) purchased at various price levels.
D) purchased at various saving rate levels.

Question

The short-run aggregate supply curve (SRAS) is the amount of real GDP:   ​
A) produced at various price levels.
B) ​produced at various savings rate levels.
C) purchased at various price levels.
D) ​purchased at various saving rate levels.

Quizplus · Accepted Answer

The short-run aggregate supply curve (SRAS) shows the relationship between the amount of real GDP that firms are willing to supply and the price level in the short run. Therefore, it represents the amount of real GDP produced at various price levels. Neither savings rate nor purchasing is directly related to the SRAS.

The Short-Run Aggregate Supply Curve (SRAS) Is the Amount of Real