The curve graphically depicting the relationship between the overall price level and the quantity of real GDP supplied at various price levels, ceteris paribus, is called the
A)long-run aggregate demand curve.
B)short-run curve.
C)aggregate supply curve.
D)aggregate demand curve.

Question

Quizplus · Accepted Answer

The curve that shows the relationship between the overall price level and the quantity of real GDP supplied is the aggregate supply curve. This curve represents the quantity of goods and services that firms are willing and able to produce at a given price level. It is often depicted as an upward-sloping curve because as prices increase, firms have an incentive to produce more goods and services to earn higher profits.

The Curve Graphically Depicting the Relationship Between the Overall Price