The aggregate-supply curve shows:
A)the quantity of goods and services that firms produce and sell at any income level
B)the quantity of goods and services that firms produce and sell at any price level
C)the quantity of goods and services that firms purchase at any income level
D)the quantity of goods and services that firms purchase at any price level

Question

Quizplus · Accepted Answer

The aggregate-supply curve shows the quantity of goods and services that firms produce and sell at any price level, reflecting the relationship between the price level and the quantity of aggregate output supplied by firms. This curve is upward-sloping because as the price level increases, firms are willing to produce and sell a greater quantity of output.

The Aggregate-Supply Curve Shows