Which of the following is not assumed to be constant along an aggregate supply curve?
A) the price level in an economy
B) the exchange rate between the domestic and a foreign currency
C) the state of technology used in production
D) the unemployment rate
E) resource prices

Question

Quizplus · Accepted Answer

The aggregate supply curve assumes that the price level in an economy is variable, not constant, as it shows the relationship between the total supply of goods and services and the price level. Other factors such as the exchange rate, the state of technology, the unemployment rate, and resource prices are assumed to be constant to isolate the effect of changes in the price level on the quantity of goods and services supplied.

Which of the Following Is Not Assumed to Be Constant