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4 votes
Which of the following follows

a positive relationship
between the average price
level and real output?
the demand curve
the aggregate demand
curve
the supply curve
the short-run aggregate
supply curve

User TRG
by
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1 Answer

4 votes

Final answer:

The short-run aggregate supply curve follows a positive relationship between the average price level and real output.


Step-by-step explanation:

The short-run aggregate supply curve follows a positive relationship between the average price level and real output. As the average price level increases, producers are willing to supply more real output.

For example, when the price level increases, firms experience higher profits, which can incentivize them to increase production. This leads to an upward-sloping short-run aggregate supply curve.

In contrast, the demand curve, aggregate demand curve, and supply curve do not necessarily have a positive relationship with the average price level and real output.


Learn more about Relationship between average price level and real output

User AlanPear
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