Exhibit 14-2
-In Exhibit 14-2, which curve represents short-run aggregate supply?
A)A
B)B
C)C
D)none of the above

Question

​Exhibit 14-2 
-In Exhibit 14-2, which curve represents short-run aggregate supply?
A)​A 
B)​B 
C)​C 
D)​none of the above

Quizplus · Accepted Answer

In Exhibit 14-2, curve B represents short-run aggregate supply. This is because it shows the amount of output that businesses are willing and able to supply at different price levels in the short run, taking into account factors such as current input prices and production technology. Curve A represents long-run aggregate supply, which is determined by factors such as the availability of resources and technology, while curve C represents aggregate demand, or the total amount of goods and services that consumers, businesses, and the government are willing and able to purchase at different price levels.

​Exhibit 14-2 -In Exhibit 14-2, Which Curve Represents Short-Run Aggregate Supply

Exhibit 14-2 -In Exhibit 14-2, Which Curve Represents Short-Run Aggregate Supply