What does the short-run aggregate supply curve show?
A) The relationship between the price level and the quantity of real GDP supplied
B) The relationship between the unemployment rate and real GDP
C) The desired level of national expenditure at different price levels
D) The relationship between labour supplied and the average wage rate

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shows the relationship between the price level and the quantity of real GDP supplied. It represents the amount of real output that firms are willing and able to supply at different price levels in the short run, holding other factors constant.

What Does the Short-Run Aggregate Supply Curve Show