The graphical relationship between the price level and the amount of real GDP that businesses will offer for sale is known as the _____ curve

Economics Dec 14, 2020

The graphical relationship between the price level and the amount of real GDP that businesses will offer for sale is known as the _____ curve.

A. aggregate demand

B. investment supply

C. investment demand

D. aggregate supply

Expert Solution

The graphical relationship between the price level and the amount of real GDP that businesses will offer for sale is known as the D. aggregate supply curve.

Aggregate Supply is the combined offerings by all business firms in the economy. The Aggregate Demand is the combined quantity of GDP consumers are demanding. Where aggregate supply and aggregate demand meet on a graph is the point of equilibrium for the macroeconomy.

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