Changes in ________ do not affect the level of aggregate supply in the long run.
A)technology
B)the number of workers in the economy
C)the price level
D)the amount of accumulated capital equipment

Question

Quizplus · Accepted Answer

Changes in the price level do not affect the level of aggregate supply in the long run as the production capacity of an economy is determined by factors such as technology and capital accumulation, which are independent of the price level. In the long run, changes in the price level only affect the level of output and employment in the short run, but not the production capacity of the economy. Therefore, choices A, B, and D are incorrect.

Changes in ________ Do Not Affect the Level of Aggregate