Which of the following is not a determinant of long-run aggregate supply?
A) the level of skills in the workforce
B) the price level
C) technology
D) the quantity of capital

Question

Quizplus · Accepted Answer

The price level is not a determinant of long-run aggregate supply as the long-run aggregate supply curve is vertical at the natural rate of unemployment, meaning that changes in price level do not affect the amount of output that firms can produce in the long run. The level of skills in the workforce, technology, and the quantity of capital are all determinants of long-run aggregate supply as they affect the economy's ability to produce goods and services over time.

Which of the Following Is Not a Determinant of Long-Run