In constructing the short-run aggregate supply curve,we define the short run as the period in which:

A) the price level is constant.
B) output is fixed.
C) profit is constant.
D) the costs of some resources are fixed.
E) the economic growth rate is less than 4 percent.

Short-Run

A period in which not all factors of production can vary, allowing for some level of fixed inputs or conditions.

Aggregate Supply Curve

A graphical representation showing the relationship between the overall price level in the economy and the total output produced by firms.

Fixed Costs

Expenses that do not change with changes in the level of production or sales, such as rent, salaries, and insurance premiums.