The economy's aggregate supply (AS)curve shows the relationship between the price level and the total
A)investment that firms wish to make,with input prices given.
B)investment that firms wish to make,as input prices vary.
C)output that firms wish to produce and sell,with input prices given.
D)output that firms wish to produce and sell,as input prices vary.
E)wealth accumulated by households,with national income given.

Question

Quizplus · Accepted Answer

DThe aggregate supply (AS) curve shows the total quantity of output (goods and services) that firms in an economy want to produce and sell at each price level. There are two versions of the AS curve: the short-run AS curve, where input prices are considered constant (C), and the long-run AS curve, where input prices can vary (D).

The Economy's Aggregate Supply (AS)curve Shows the Relationship Between the Price