Multiple Choice
is explained by the interest-rate, real-balances, and foreign purchases effects.
gets steeper as the economy moves from the top of the curve to the bottom of the curve.
shows the various amounts of real output that businesses will produce at each price level.
is downward-sloping because real purchasing power increases as the price level falls.
1 answer
The correct answer is:
shows the various amounts of real output that businesses will produce at each price level.
The aggregate supply curve illustrates the relationship between the overall price level in the economy and the total output (real GDP) that firms are willing to produce at that price level.
