The relationship between the price level and the real output of goods and services in the economy without full adjustment or full information is represented by
A)the long-run aggregate supply curve.
B)the short-run aggregate supply curve.
C)the aggregate demand curve.
D)the distance between the long-run aggregate supply curve and the short-run aggregate supply curve.

Question

Quizplus · Accepted Answer

The relationship between the price level and the real output of goods and services in the economy without full adjustment or full information is represented by the short-run aggregate supply curve. The short-run aggregate supply curve represents the relationship between the price level and the amount of output firms are willing to produce and sell, holding constant the prices of inputs.

The Relationship Between the Price Level and the Real Output