The aggregate supply curve indicates
A)the quantity of aggregate output that producers are willing and able to supply at each possible price level
B)the total quantity of a particular good that all producers are willing to supply at each possible price level
C)the total quantity of a particular good that all producers are willing to supply at the equilibrium price level
D)the quantity of aggregate output that producers are willing and able to supply at the equilibrium price level
E)the quantity of aggregate output that producers are willing and able to supply at the equilibrium level of GDP

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the quantity of goods and services that firms are willing and able to supply at each possible price level in the economy. It reflects the relationship between the price level and the aggregate output, holding other factors constant. The curve is upward sloping, indicating that higher prices lead to higher profits and therefore a greater level of output.

The Aggregate Supply Curve Indicates