The short-run aggregate supply curve shows a(n):
A)direct relationship between the expected price level and nominal GDP supplied.
B)inverse relationship between the actual price level and real GDP supplied.
C)direct relationship between the actual price level and nominal GDP supplied.
D)direct relationship between the actual price level and real GDP supplied.
E)inverse relationship between the expected price level and real GDP supplied.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shows a direct relationship between the actual price level and real GDP supplied, meaning that as the price level increases, suppliers are willing to increase production and supply more goods and services in the short run.

The Short-Run Aggregate Supply Curve Shows A(n)