Which of the Following Is True of the Aggregate Supply

question 108

Multiple Choice

Which of the following is true of the aggregate supply curve?

• A)It shows the inverse relationship between prices and national output.
• B)It shows the positive relationship between the price level and the supply of all goods produced in the economy.
• C)It shows the amount of real GDP consumed at different price levels.
• D)It is a negatively sloped curve that shows the relationship between the price level and the cost of production of firms in the economy.
• E)It shows the positive relationship between price and quantity supplied of an individual good.

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Definitions:

Proportion

A statistical measure indicating the fraction of a whole that is made up by a certain characteristic or subset.

Negatively Skewed

Refers to a distribution or data set where the tail is longer on the left side of the distribution's peak, indicating that the mass of the distribution is concentrated on the right.

Histogram

A graphical representation of the distribution of numerical data, using bars of different heights.

Representative

Term used to describe a subset or a sample that accurately reflects the larger population or dataset from which it is drawn.