The ________ represents the relationship between the price level and the real output of goods and services in the economy without full adjustment or full information.
A)short-run aggregate supply curve
B)long-run aggregate supply curve
C)aggregate demand curve
D)labour supply curve

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve represents the relationship between the price level and the real output of goods and services in the economy without full adjustment or full information. This curve assumes that input prices remain constant in the short run, which means that the full adjustment to changes in the price level has not occurred yet. In contrast, the long-run aggregate supply curve assumes full adjustment and reflects the economy's potential output level at full employment. The aggregate demand curve represents the relationship between the price level and the quantity of goods and services demanded by households, firms, and the government, while the labour supply curve represents the relationship between the wage rate and the quantity of labour supplied by workers.

The ________ Represents the Relationship Between the Price Level and the Real