The Aggregate Supply Curve Illustrates That the

question 36

Multiple Choice

The aggregate supply curve illustrates that the

• A)higher the price level,the greater the quantity of real GDP supplied.
• B)higher the price level,the smaller the quantity of real GDP supplied.
• C)aggregate demand curve is not needed to determine the aggregate price level.
• D)price level does not affect the quantity of real GDP supplied.
• E)amount of potential GDP increases when the price level rises.

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Definitions:

Farm Incomes

The earnings generated from the operation of a farm, including profits from selling agricultural products.

Cross Elasticity

A metric showing how demand for a particular good is affected by changes in the pricing of another good.

DVD Players

Electronic devices designed to play discs in the DVD format, capable of producing both sound and video from digital optical disc storage.

Income Elasticity

A measure of how much the demand for a product or service changes relative to a change in consumers' income levels.