The aggregate supply curve:
A) shows the level of nominal GDP that firms are willing to produce at different
Price levels.
B) shows the level of real GDP that firms are willing to consume at different price levels.
C) shows the level of real GDP that firms are willing to produce at different price levels.
D) shows the amount of goods and services consumers are willing to buy at different
Price levels.

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the level of real GDP that all firms in an economy are willing to produce at different price levels. It is a graphical representation of the relationship between the price level and the amount of real output that firms are willing to supply in the short run, given certain assumptions such as sticky wages and prices.

The Aggregate Supply Curve