Answer:
B. Real domestic output for the horizontal axis and price level for the vertical axis
Explanation:
The aggregate supply curve depicts the total number of goods and services produced in an economy that suppliers are willing to sell at a given price at given point in time.
The aggregate supply curve is plotted with the real domestic output on the horizontal axis and price level for the vertical axis.
The intersection of the aggregate supply and demand curve determines equilibrium price and quantity.
There are two types of agregrate supply curves:
1. The short run aggregate supply curve which slopes upward ,this reflects the relationship between quantity supplied and price in the short run; the higher the price , the higher the quantity supplied.
2. The long run aggregate supply curve which is vertical in the long run. It indicates that in the long run, quantity supply isn't affected by prices.
