Which of the following is true of the short-run aggregate supply curve?
a. It shows the relation between the inflation rate and the quantity of aggregate output firms supply, other things constant.
b. It shows the relation between the price of labor and the aggregate quantity of labor workers supply, other things constant.
c. It shows the relation between the interest rate and the quantity of capital goods firms supply, other things constant.
d. It shows the relation between the price level and the quantity of aggregate output firms supply, other things constant.
e. It shows an inverse relationship between the price level and real GDP.
d
You might also like to view...
Most economic activity in the United States is carried out by monopolies.
Answer the following statement true (T) or false (F)
Leakages from the circular flow include saving and imports
a. True b. False Indicate whether the statement is true or false
A decrease in long-run aggregate supply increases the value of real GDP at the natural rate of unemployment for all price levels
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 15.3 below to answer the question(s) that follow. 
Figure 15.3 Refer to Figure 15.3. In the long run, this monopolistic competitive firm should expect
A. firms to enter the industry until all economic profits are eliminated. B. firms to enter the industry and profits to increase. C. firms to exit the industry and profits to increase. D. nothing to change; it will continue to make a profit.