The aggregate supply curve reflects the direct relationship between the price level and the quantity of aggregate output supplied.

Question

Quizplus · Accepted Answer

The aggregate supply curve shows that as the price level increases, the quantity of aggregate output supplied also increases. This is due to the fact that producers are willing to produce and supply more goods and services at higher prices, which translates into a greater level of aggregate output supplied.

The Aggregate Supply Curve Reflects the Direct Relationship Between the Price