A curve showing the direct relationship between the overall price level and the level of real output supplied, ceteris paribus, in response to changes in the demand before full adjustment of relative prices has taken place is called the
A)long-run aggregate supply curve.
B)short-run aggregate supply curve.
C)aggregate supply curve.
D)aggregate demand curve.

Question

Quizplus · Accepted Answer

The description given in the question describes the concept of the short-run aggregate supply curve, which shows the positive relationship between the overall price level and the quantity of output supplied in the short run, assuming that resource prices are constant.

A Curve Showing the Direct Relationship Between the Overall Price