How are the various output levels produced at different price levels illustrated?
A) by the short-run aggregate supply curve
B) by the aggregate demand curve
C) by the labour demand curve
D) by the labour supply curve

Question

How are the various output levels produced at different price levels illustrated?  
A) by the short-run aggregate supply curve 
B) by the aggregate demand curve 
C) by the labour demand curve 
D) by the labour supply curve

Quizplus · Accepted Answer

The short-run aggregate supply curve illustrates the various output levels that can be produced at different price levels in the short term because it takes into account the existing levels of inputs like labor and capital. The aggregate demand curve shows the various levels of output that consumers are willing to purchase at different price levels. Together, these two curves give us a look at the output levels that can be produced and demanded at different price levels.

How Are the Various Output Levels Produced at Different Price