The determinants of aggregate supply:
A)are consumption, investment, government, and net export spending.
B)explain why real domestic output and the price level are directly related.
C)explain the three distinct ranges of the aggregate supply curve.
D)include input prices and r productivity.

Question

Quizplus · Accepted Answer

The determinants of aggregate supply include input prices and productivity. Input prices determine the cost of production, which affects the willingness of firms to produce goods and services. Productivity is an important determinant of aggregate supply because it influences the level of output that can be produced with a given amount of inputs.

The Determinants of Aggregate Supply