Long-run aggregate supply will decrease for all of the following reasons EXCEPT
A) reduced money wages.
B) decreased human capital.
C) decreased level of full employment.
D) decreased capital.

Question

Quizplus · Accepted Answer

Reduced money wages do not decrease long-run aggregate supply; they primarily affect short-run aggregate supply. Long-run aggregate supply is influenced by factors like technology, human capital, and physical capital, but not by nominal variables like money wages.

Long-Run Aggregate Supply Will Decrease for All of the Following