The short-run aggregate supply curve is horizontal at:
A) a level of output determined by aggregate demand.
B) the natural level of output.
C) the level of output at which the economy's resources are fully employed.
D) a fixed price level.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve is horizontal at a fixed price level, indicating that firms are willing to supply any amount of goods at that price level, assuming other factors like wages and resource costs are constant.

The Short-Run Aggregate Supply Curve Is Horizontal At