The quantity of real GDP supplied depends on the
A) level of aggregate demand.
B) quantity of labor, the quantity of capital, and the state of technology.
C) quantity of capital, bonds, and stocks.
D) price level, the unemployment rate, and the quantity of government expenditures on goods and services.

Question

Quizplus · Accepted Answer

Real GDP is determined by the quantity of labor, the quantity of capital, and the state of technology, which are the factors of production. Changes in aggregate demand can impact the level of real GDP in the short run, but in the long run, real GDP will tend to equal the potential output determined by these factors of production. The price level, unemployment rate, and government expenditures can also impact real GDP, but these are not the primary determinants.

The Quantity of Real GDP Supplied Depends on the