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Ierofanga [76]
3 years ago
8

The short-run aggregate supply curve implies that real output exceeds its long-run level when the price level is:

Business
1 answer:
Annette [7]3 years ago
4 0

Answer:

greater than the expected price level

Explanation:

The short run aggregate supply curve shows graphically that the real output is more than its long run level when the price level is more than expected price level. When there is great expectation about inflation it shifts the short run Aggregate Supply curve outwards or to the right. Price level would then rise in the long run but real output would stay the same or unchanged.

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