The aggregate supply curve represents:
A)the quantity of aggregate output that producers are willing and able to supply at each possible price level.
B)the total quantity of a particular good that all producers are willing to supply at each possible price level.
C)the total quantity of a particular good that all producers are willing to supply at the equilibrium price level.
D)the quantity of aggregate output that producers are willing and able to supply at the equilibrium price level.
E)the quantity of aggregate output that producers are willing and able to supply at the equilibrium level of GDP.

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the total amount of goods and services that an economy's producers are willing and able to supply at each possible price level. This curve takes into account not only the prices of goods and services, but also the costs of production, such as wages and raw materials. Therefore, choice A is the correct answer.

The Aggregate Supply Curve Represents