Aggregate supply is the quantity of:
A)Real output supplied at each level of inflation
B)Nominal output supplied at each level of inflation
C)Real output supplied at each level of real interest rate
D)Output the country wants at each level of inflation

Question

Quizplus · Accepted Answer

Aggregate supply refers to the total amount of real output that all firms in an economy are willing and able to produce at a given price level. It is typically shown as a positively sloped curve, indicating that as the price level increases, the quantity of real output supplied also increases. Therefore, choice A is the correct answer as it refers to real output supplied at each level of inflation. The other choices are incorrect as they do not accurately describe aggregate supply.

Aggregate Supply Is the Quantity Of