The aggregate supply curve:
A) shows the level of real GDP produced in the economy at different possible price levels during a period of time.
B) is horizontal in the Keynesian range.
C) is vertical in the classical range.
D) all of the above.

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the level of real GDP produced in the economy at different possible price levels during a period of time. It is horizontal in the Keynesian range, where there is excess capacity and unused resources, and vertical in the classical range, where resources are fully employed and the economy is at potential output. Therefore, all of the above statements are correct.

The Aggregate Supply Curve