Answer Happy

Question 4 Which of the following statements best describes the aggregate supply curve? The aggregate supply curve represents the relationship between the inflation rate and the total output or real GDP in the macroeconomy. The aggregate supply curve represents the relationship between the price level and the total output or real GDP in the macroeconomy. The aggregate supply curve represents the relationship between the price level and the potential output or GDP in the macroeconomy. The aggregate supply curve represents the relationship between the inflation rate and the total demand or real GDP in the macroeconomy. Question 5 If the price level increases in the economy, The total spending in the economy will rise. The aggregate supply will fall and shift to the left. The total spending in the economy will fall. The aggregate demand will fall and shift to the left.