Short-run aggregate supply:
A)is a fixed volume of output.
B)reflects how much RGDP suppliers are willing and able to produce at different price levels.
C)shifts only when the LRAS shifts.
D)is not affected at all by the price level.

Question

Short-run aggregate supply:
A)​is a fixed volume of output.
B)​reflects how much RGDP suppliers are willing and able to produce at different price levels.
C)​shifts only when the LRAS shifts.
D)​is not affected at all by the price level.

Quizplus · Accepted Answer

Short-run aggregate supply (SRAS) reflects how much real GDP suppliers are willing and able to produce at different price levels. It is upward sloping, meaning that as prices increase, businesses are willing to produce more output in the short-run. However, SRAS can shift due to changes in input prices, technology, or the productivity of labor, among other factors. LRAS, on the other hand, is a fixed volume of output in the long-run and does not shift in response to changes in the price level.

Short-Run Aggregate Supply