Aggregate supply (AS) in the short run denotes the relationship between the that firms choose to produce and sell and the , holding the price of inputs fixed. Question 8 options: total inputs; types of goods total quantity of output; price level of output price of goods; number of employees type of goods; input price of raw materials

Aggregate supply (AS) in the short run denotes the relationship between the TOTAL QUANTITY OF OUTPUT that firms choose to produce and sell and the PRICE LEVEL OF OUTPUT, holding the price of inputs fixed.

Explanation:

The short run aggregate supply (SRAS) curve shows the relationship between price level and total output. As the price level increases, total output increases. Since there is a direct relationship between price and quantity produced, the slope of the curve is always positive. In the short run there is always a least one fixed factor of production (it is generally capital).

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