The aggregate supply curve indicates the
A) relationship between prices and the aggregate quantity of goods and services purchased by consumers, investors, governments, and foreigners (net exports).
B) relationship between prices and the natural rate of unemployment.
C) relationship between the real wage rate and the quantity of labor supplied by households.
D) quantity of goods and services producers will supply at different price levels.

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the relationship between the price level and the quantity of goods and services that firms are willing to supply. As the price level increases, firms are generally willing to produce more output, so the aggregate supply curve slopes upward.

The Aggregate Supply Curve Indicates the