An aggregate supply curve describes the relationship between household expenditures & household income. Chapter 9 What relationship does the aggregate supply curve indicate? Short‐run aggregate supply curve.The short‐run aggregate supply (SAS) curve is considered a valid description of the supply schedule of the economy only in the short‐run. A normal supply curve slopes up to the right. We can break it down into two main curves in the short run and the long run. 7.2 the AD curve is drawn for a given value of the money supply M. The model of aggregate demand and aggregate supply provides an easy explanation for the menu of possible outcomes described by the Phillips curve. The aggregate supply curve is vertical which reflects economists’ belief that changes in aggregate demand only temporarily change the economy’s total output. In the long-run, the aggregate supply curve and aggregate demand curve are only affected by capital, labor, and technology. The aggregate supply curve describes the relationship between real GDP and changes in price levels. The short‐run is the period that begins immediately after an increase in the price level and that ends when input prices have increased in the same proportion to the increase in the price level. The aggregate supply curve describes, for each given price level, the quantity of output firms are willing to supply. Aggregate Demand and Aggregate Supply: Aggregate demand is the relationship between the price level and the amount of real GDP demanded while aggregate supply is the relationship … Aggregate Demand Curve Describe the relationship illustrated by the aggregate from ECN 240 at Arizona Western College In Fig. An aggregate supply curve simply adds up the supply curves for every producer in the country. the price level and the aggregate quantity supplied. The study of supply and demand is known as macroeconomics. Aggregate Demand: The term aggregate demand (AD) is used to show the inverse relation between the quantity of output demanded and the general price level. Aggregate supply and aggregate demand is the total supply and demand of an entire economy. Short-run Aggregate Supply. The higher the price and the longer the time frame, the more you would produce. The Aggregate Supply: The aggregate supply refers to the total amount of goods and services that are planned to be sold by firms during a specific time period in a national economy.   None of the above is correct Everything in the economy is assumed to be optimal. What Relationship Does The Aggregate Supply Curve Describe? Macroeconomics is a top-down look at an economy. the price level and the aggregate quantity demanded. Their names are the short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) curves. That's what the supply curve describes. the price level & nominal GDP. The AD curve shows the quantity of goods and services desired by the people of a country at the existing price level. This creates a symbiotic relationship that allows companies to determine which product will be most profitable to produce. In the short-run, the aggregate supply is graphed as an upward sloping curve. In the short run the AS curve is horizontal (the Keynesian aggregate supply curve); in the long run the AS curve is vertical (the classical aggregate supply curve).