Which of the following does NOT affect the long-run aggregate supply curve?
A) Technology
B) Production possibilities curve
C) Endowments of resources
D) Price level

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve is not affected by changes in the price level. This curve is determined by factors such as technology, production possibilities, and resources endowments, which affect the economy's potential output in the long-run. The price level only determines where the economy is on the long-run aggregate supply curve, but it does not shift the curve itself.

Which of the Following Does NOT Affect the Long-Run Aggregate