Other things constant, what relationship is expressed by aggregate supply?
A) the relationship between the price level in the economy and the aggregate output that firms will produce
B) the relationship between the price level and the aggregate amount that people will buy at that price level
C) the relationship between the price level and the potential amount of output
D) the relationship between the quantity of output that will be produced and that which will be sold in a one-year period

Question

Other things constant, what relationship is expressed by aggregate supply?  
A) the relationship between the price level in the economy and the aggregate output that firms will produce 
B) the relationship between the price level and the aggregate amount that people will buy at that price level 
C) the relationship between the price level and the potential amount of output 
D) the relationship between the quantity of output that will be produced and that which will be sold in a one-year period

Quizplus · Accepted Answer

The aggregate supply curve shows the relationship between the overall price level in the economy and the total output that firms are willing to produce at that price level.

Other Things Constant, What Relationship Is Expressed by Aggregate Supply