Which of the following is true of the aggregate supply curve?
a. It shows the inverse relationship between prices and national output.
b. It shows the positive relationship between the price level and the supply of all goods produced in the economy.
c. It shows the amount of real GDP consumed at different price levels.
d. It is a negatively sloped curve that shows the relationship between the price level and the cost of production of firms in the economy.
e. It shows the positive relationship between price and quantity supplied of an individual good.
Question 2
Ceteris paribus means:
a. if events A and B occur together, one must cause the other.
b. all relevant details are included.
c. what is true for the individual must be true for the whole.
d. holding other things constant.
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