In the long run, the level of output:
A) depends on the price level.
B) depends on the money supply.
C) is determined by the supply of resources and the level of technological progress.
D) all of the above

Question

Quizplus · Accepted Answer

The long-run level of output is determined by the supply of resources (such as labor and capital) and the level of technological progress. Both of these factors are independent of the price level and the money supply. While the price level and money supply can impact output in the short run, they do not have a significant impact on the long-run level of output. Therefore, choice C is the best answer.

In the Long Run, the Level of Output