The aggregate supply curve
A) shows what each producer is willing and able to produce at each income level.
B) relates planned aggregate production to price level.
C) is the sum of all supply curves of natural resources.
D) shows a negative relationship between the price level and real Gross Domestic Product (GDP).

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the relationship between planned aggregate production and the price level. It indicates how much firms are willing to produce and sell at different price levels in the economy.

The Aggregate Supply Curve