What does aggregate supply reflect?
A) It reflects billions of production decisions made by millions of individual resource suppliers and firms in the economy.
B) It reflects billions of production decisions made by millions of individual households in the economy.
C) It shows the relation between the interest rate and the quantity of capital goods firms supply.
D) It shows the relation between investment and the quantity of capital goods firms supply.
E) It shows an inverse relationship between the price level and real GDP.

Question

Quizplus · Accepted Answer

Aggregate supply reflects the collective decisions made by all the individual firms and resource suppliers in an economy. It represents the total quantity of goods and services that producers are willing and able to supply at different price levels.

What Does Aggregate Supply Reflect