Aggregate supply is the relationship between the quantity of goods and services supplied and the:
A) money supply.
B) unemployment rate.
C) interest rate.
D) price level.

Question

Quizplus · Accepted Answer

Aggregate supply is the relationship between the quantity of goods and services supplied by producers and the price level in the economy. As the price level increases, producers are incentivized to increase their supply of goods and services, leading to an upward sloping aggregate supply curve. Therefore, the correct answer is the price level (choice D). The money supply (choice A), unemployment rate (choice B) and interest rate (choice C) may have an impact on the economy and overall supply and demand, but they do not have a direct relationship with aggregate supply.

Aggregate Supply Is the Relationship Between the Quantity of Goods