An aggregate supply curve represents the relationship between the:
A) Price level and the buying of real domestic output
B) Price level and the production of real domestic output
C) Real domestic output bought and the real domestic output sold
D) Price level that producers are willing to accept and the price level buyers are willing to pay

Question

Quizplus · Accepted Answer

An aggregate supply curve represents the relationship between the price level and the production of real domestic output. It shows the level of real GDP that producers are willing to supply at different price levels. The higher the price level, the higher the quantity of output producers are willing to supply, as they can earn more profits.

An Aggregate Supply Curve Represents the Relationship Between The