The aggregate supply (AS) curve is derived from:
A) Okun's law.
B) the Phillips curve.
C) the Fisher equation.
D) the monetary policy rule.
E) the interaction of the IS and MP curves.

Question

Quizplus · Accepted Answer

The aggregate supply (AS) curve is derived from the Phillips curve, which shows the inverse relationship between unemployment and inflation. The AS curve represents the relationship between the price level and the level of production, and it is derived from the Phillips curve by adjusting for supply-side factors, such as changes in productivity, input prices, and the natural rate of unemployment.

The Aggregate Supply (AS) Curve Is Derived From