The aggregate supply curve is:
A) the relationship between the overall price level and total production by firms.
B) downward-sloping.
C) the sum total of the production of all the firms in the economy for every given demand level.
D) the sum total of the production of all the firms in the economy for every level of profit.

Question

Quizplus · Accepted Answer

The aggregate supply curve shows the relationship between the overall price level and the total production by all the firms in the economy. It is not based on levels of profit or demand, and while it may be upward-sloping in the short run, in the long run it is typically depicted as vertical or nearly vertical.

The Aggregate Supply Curve Is