The short-run aggregate supply (SAS) curve is the relationship between the quantity of real GDP that macroeconomic players plan to supply and the
A) quantity of real GDP demanded.
B) exchange rate.
C) inflation rate.
D) unemployment rate.
E) price level.

Question

Quizplus · Accepted Answer

The short-run aggregate supply (SAS) curve shows the relationship between the quantity of real GDP that macroeconomic players plan to supply and the price level. As the price level increases, firms are willing to produce more output in the short run due to higher profits, resulting in a positively sloped SAS curve.

The Short-Run Aggregate Supply (SAS) Curve Is the Relationship Between