The relationship between the level of prices and total quantity of goods and services producers are willing to supply is represented by the
A) aggregate demand curve.
B) aggregate supply curve.
C) sticky price curve.
D) GDP multiplier.

Question

Quizplus · Accepted Answer

The level of prices and total quantity of goods and services producers are willing to supply is represented by the aggregate supply curve. The aggregate demand curve represents the relationship between the level of prices and total quantity of goods and services that consumers are willing to purchase. The sticky price curve is a short-run Phillips curve that describes the relationship between changes in the level of output and changes in the rate of inflation. The GDP multiplier is a measure of the total effects on real GDP of a change in a component of aggregate demand, such as government spending or investment.

The Relationship Between the Level of Prices and Total Quantity