In the long run,we typically assume that ________.
A)capital,labor,and technology are independent of the level of inflation
B)the natural rate of unemployment is independent of the level of inflation
C)aggregate supply is fixed and independent of the level of inflation
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

In the long run, it is typically assumed that capital, labor, and technology (factors affecting aggregate supply) as well as the natural rate of unemployment are independent of the level of inflation. This reflects the classical dichotomy where real variables are not affected by nominal variables like inflation in the long run.

In the Long Run,we Typically Assume That ________