The Short-Run Aggregate Supply Curve

question 214

Multiple Choice

The short-run aggregate supply curve

• A) shows a negative relationship between the price level and real national income holding constant potential GDP and all resource prices.
• B) shows what each producer is willing and able to produce at each level of income holding constant potential GDP and all resource prices.
• C) shows the relationship between aggregate production and the price level holding constant potential GDP and all resource prices.
• D) becomes vertical if there is excess production capacity within the economy.

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