The aggregate supply curve shows the relationship between the ____ and the ____, holding all other factors constant.
A)price level; quantity of real GDP supplied
B)price level; supply of nominal GDP
C)nominal GDP; price level of real GDP
D)price level; amount of nominal GDP supplied

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the relationship between the price level and the quantity of real GDP supplied, holding all other factors constant. This means that as the price level increases, the quantity of real GDP supplied by firms also increases, assuming that other factors such as technology, input prices, and the level of available resources stay the same.

The Aggregate Supply Curve Shows the Relationship Between the ____