Choose the correct statement. A. Aggregate supply and the quantity of real GDP s
ID: 1135602 • Letter: C
Question
Choose the correct statement.
A. Aggregate supply and the quantity of real GDP supplied are two ways of expressing the same concept.
B. Aggregate supply is the relationship between the quantity of real GDP supplied and potential GDP.
C. At any given time, the quantity of capital and the state of technology are fixed because they depend on decisions made in the past, and the quantity of labor is fixed because it depends on the population.
D. The relationship between the quantity of real GDP supplied and the price level is different in the long run than in the short run.
Explanation / Answer
D is correct
Aggregate supply shows the relationship between real gdp supplied and price level. It is different in short run and long run. In short run aggregate supply is upward sloping and in long run it is vertical.