The short-run aggregate supply curve:
A)represents a fixed volume of output.
B)reflects how much real GDP suppliers are willing and able to produce at different price levels.
C)shifts only when the long-run aggregate supply shifts.
D)is not affected at all by the price level.
E)reflects the amount of real GDP supplied when all input prices are variable.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve reflects how much real GDP suppliers are willing and able to produce at different price levels in the short run, assuming that all other factors remain constant. It is upward sloping because as prices increase, suppliers are willing to produce more in order to increase their profits. However, it is not fixed, as it can shift due to changes in input prices, technology, or other factors that affect production costs.

The Short-Run Aggregate Supply Curve