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The short-run aggregate supply curve O shows what each producer is willing and able to produce at each level of income holding constant potential GDP
The short-run aggregate supply curve O shows what each producer is willing and able to produce at each level of income holding constant potential GDP and all resource prices. O shows the relationship between aggregate production and the price level holding constant potential GDP and all resource prices. O becomes vertical if there is excess production capacity within the economy. O shows a negative relationship between the price level and real national income holding constant potential GDP and all resource prices.When the labor market is at full employment O real GDP equals potential GDP. O the price level is stable. O the price level equals the potential price level. O the short run aggregate supply on we is horizontal. A change in creates a movement along the aggregate demand curve but does not shift the aggregate demand curve. O tax rates O the price level O fiscal policy O None of these because they all shift the aggregate demand curve.The f'iD curve slopes O downward clue to the wealth and price effects. (:3; downward due to the wealth and substitution effects. O upward clue to the price and substitution effects. O upward clue to the wealth and substitution effects
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