The short-run aggregate supply curve shows the:
A) Inverse relationship between the price level and real GDP purchased
B) Inverse relationship between the price level and real GDP produced
C) Direct relationship between the price level and real GDP produced
D) Direct relationship between the price level and real GDP purchased

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve illustrates a direct relationship between the price level and the quantity of real GDP that firms are willing to produce, meaning as the price level increases, the quantity of goods and services supplied also increases.

The Short-Run Aggregate Supply Curve Shows The