Aggregate supply reflects billions of production decisions made by
A)consumers when they decide which products to purchase
B)households and firms,because they each demand goods and services
C)the largest firms and largest households
D)households,which demand resources,and firms,which supply resources
E)resource suppliers and firms

Question

Quizplus · Accepted Answer

Aggregate supply reflects the decisions made by both resource suppliers and firms. Resource suppliers include households and firms that supply resources such as labour, land and capital, while firms demand these resources to produce goods and services. Therefore, both households and firms are involved in production decisions that affect aggregate supply.

Aggregate Supply Reflects Billions of Production Decisions Made by