The aggregate supply curve shows the relationship between the price level and the:
A)equilibrium GDP in the economy.
B)total quantity of output that suppliers collectively produce.
C)total quantity of output that buyers collectively plan to purchase.
D)potential GDP in the economy.

Question

Quizplus · Accepted Answer

The aggregate supply curve represents the total quantity of output that all suppliers in the economy are willing and able to produce at different price levels. It is not directly related to equilibrium GDP, the quantity of output that buyers plan to purchase, or potential GDP.

The Aggregate Supply Curve Shows the Relationship Between the Price