The short-run aggregate supply curve is drawn with:
A)the price level on the vertical axis and real GDP on the horizontal axis.
B)the price level on the vertical axis and nominal GDP on the horizontal axis.
C)nominal GDP on the vertical axis and real GDP on the horizontal axis.
D)real GDP on the horizontal axis and the rate of unemployment on the vertical axis.
E)real GDP on the vertical axis and nominal GDP on the horizontal axis.

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shows the relationship between the price level and the quantity of real GDP that firms are willing to supply, holding constant other factors such as input prices and technology. Therefore, the short-run aggregate supply curve is typically drawn with the price level on the vertical axis and real GDP on the horizontal axis.

The Short-Run Aggregate Supply Curve Is Drawn With