Assuming that a is positive, how are theories of short-run aggregate supply expressed mathematically?
A) quantity of output supplied = natural rate of output + a(actual price level - expected price level)
B) quantity of output supplied = natural rate of output + a(expected price level - actual price level)
C) quantity of output supplied = a(actual price level - expected price level) - natural rate of output
D) quantity of output supplied = a(expected price level - actual price level) - natural rate of output

Question

Quizplus · Accepted Answer

The correct expression for theories of short-run aggregate supply is: quantity of output supplied = natural rate of output + a(actual price level - expected price level). This reflects how the actual quantity of goods and services supplied in the short run can deviate from the natural rate of output based on differences between the actual price level and the expected price level.

Assuming That a Is Positive, How Are Theories of Short-Run