Which of the following correctly describes the aggregate supply curve?
A) A curve that shows the level of real GDP demanded at different possible price levels.
B) A curve that shows the level of real GDP produced at different possible price levels.
C) A curve that shows the level of quantity supplied by firms in a market at different possible prices, such as the supply of oranges in the oranges market.
D) None of the above.

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the level of real GDP produced at different possible price levels. It represents the total quantity of goods and services that firms are willing and able to produce at each price level in the economy.

Which of the Following Correctly Describes the Aggregate Supply Curve