Which of the following components is not included in the equation for the short-run aggregate supply curve?

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve is derived from the production function and reflects the relationship between prices and output in the short run. The curve is based on factors such as input prices, technology, and production capacity, as well as any temporary supply shocks that may have occurred. Nominal interest rates are not included in the equation for the short-run aggregate supply curve.

Which of the Following Components Is Not Included in the Equation