Identify the correct statement about the aggregate supply curve
a. The aggregate supply curve is irrelevant for determining macroeconomic equilibrium.
b. The aggregate supply curve shows the various quantities of a particular good that is produced in the economy.
c. The aggregate supply curve shows an inverse relationship between price level and employment.
d. The aggregate supply curve shifts inward with an increase in consumer spending, investment, government spending, and net exports.
e. The aggregate supply curve relates total output in the economy to alternative price levels.
e
You might also like to view...
If the rate of inflation is zero, prices are expected to remain stable, and the nominal rate of interest is 5 percent, then the
A) real rate of interest is equal to the nominal rate. B) real rate of interest is less than the nominal rate. C) nominal rate is greater than the real rate of interest. D) investment demand schedule will shift upward.
Along the long-run Phillips curve, the value of _____ remains constant
a. unemployment b. inflation c. the interest rate d. investment