The short-run aggregate supply curve is the relationship between the quantity of real GDP supplied and
A)the quantity of real GDP demanded.
B)real income.
C)the inflation rate.
D)the real interest rate.
E)the price level.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shows the relationship between the quantity of real GDP supplied and the price level in the economy. As the price level increases, firms are willing to supply more goods and services in the short run, resulting in a positive relation between the price level and the quantity of real GDP supplied.

The Short-Run Aggregate Supply Curve Is the Relationship Between the Quantity