The aggregate supply curve reflects the relationship between the
A)price of a particular good and the quantity supplied by all firms producing that good
B)price of a particular good and the quantity supplied by the aggregate economy
C)price level and the quantity of all goods supplied in the economy
D)price level and the quantity purchased of all goods in the economy
E)price level and investment spending

Question

Quizplus · Accepted Answer

The aggregate supply curve reflects the relationship between the overall price level in the economy and the quantity of all goods and services supplied in the economy. It is not specific to a particular good or firm, but rather represents the aggregate output of all firms and industries. Option A refers to a specific market, while option B is similar to option C but does not represent the entire economy. Option D refers to quantity purchased rather than quantity supplied, and option E refers to investment spending rather than the quantity supplied of all goods.

The Aggregate Supply Curve Reflects the Relationship Between the