The graph that shows the relationship between the aggregate quantity of output supplied by all the firms in an economy and the overall price level is
A) the aggregate supply curve.
B) the aggregate production function.
C) the production possibilities frontier.
D) the aggregate demand curve.

Question

Quizplus · Accepted Answer

The graph that shows the relationship between the aggregate quantity of output supplied by all the firms in an economy and the overall price level is the aggregate supply curve. The other options, such as the aggregate production function and production possibilities frontier, do not specifically relate to the relationship between output and price level. The aggregate demand curve shows the relationship between the overall price level and the quantity of goods and services that households, businesses, and governments want to buy.

The Graph That Shows the Relationship Between the Aggregate Quantity