A horizontal AS supply curve expresses the idea that:
A) the price level is dependent of the output level in the short run.
B) the output level is dependent on the price level in the short run.
C) potential output is fixed in the short run.
D) firms will supply the output demanded at the fixed price level.

Question

Quizplus · Accepted Answer

A horizontal AS supply curve indicates that firms are willing to supply any amount of output at a fixed price level, meaning the price level does not change with changes in output.

A Horizontal AS Supply Curve Expresses the Idea That