Question

. Draw the general shape of the AS Curve in the space below ( be sure to label both the x- axis and the y-axis : i.e., label the two variables that are shown on an AS Curve)

Answer 1

AS(aggregate supply) curve is the curve on which every point shows the quantity of supply of goods and services for different level of price in the economy.

In the below diagram on X-axix we measure Quantity of goods (Y) sometime Y also represent the real gdp or output of economy and on the Y-axix we measure Price of the goods(P). Here the variable are Price and quantity of goods. Here the shape of AS curve is upward sloping which means as price(P) increases supply of goods will also increase.