The Short-Run Aggregate Supply Curve

Multiple Choice

The short-run aggregate supply curve

A) shows what each producer is willing and able to produce at each level of income holding constant potential GDP and all resource prices.
B) shows the relationship between aggregate production and the price level holding constant potential GDP and all resource prices.
C) becomes vertical if there is excess production capacity within the economy.
D) shows a negative relationship between the price level and real national income holding constant potential GDP and all resource prices.