Which of the following statements about short-run aggregate supply is the most accurate?
A)It is not affected in any manner by the price level.
B)It reflects how much real GDP suppliers are willing and able to produce at different price levels.
C)It shifts only when the LRAS shifts.
D)It is a fixed volume of output.

Question

Quizplus · Accepted Answer

Short-run aggregate supply reflects how much real GDP suppliers are willing and able to produce at different price levels. It is affected by changes in production costs, such as wages and raw materials, which can affect the amount of output firms are able to produce at different price levels. Short-run aggregate supply can also shift independently of long-run aggregate supply.

Which of the Following Statements About Short-Run Aggregate Supply Is