The Short- Run Aggregate Supply Curve

question 239

Multiple Choice

The short- run aggregate supply curve

• A) shifts because of changes in the price level.
• B) shows the impact changes in the price level have on the quantity of real GDP when resource prices are constant.
• C) illustrates the level of potential real GDP.
• D) is vertical.

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Definitions:

Aggregate Plan

A strategic framework used in production and operations management to determine the necessary production levels, inventory, and workforce to meet anticipated demand.

Capacity

The maximum amount that something can contain or accomplish, such as production capability within a given period.

Aggregate Plan

A production planning method that aims to establish overall output levels and inventory policies over a medium-term horizon to meet forecasted demand.

Master Production Schedule

A detailed plan that outlines when and how much of each product needs to be produced over a certain period to meet forecasted sales demand.