Which of the following factors influence the position of the long-run aggregate supply curve?
A) the supply of money
B) government spending
C) taxes
D) the level of full-employment output

Question

Quizplus · Accepted Answer

The position of the long-run aggregate supply curve is determined by the level of full-employment output, which represents the maximum sustainable output level that can be produced by an economy. Factors such as the supply of money, government spending, and taxes primarily affect the short-run aggregate supply curve, which can shift in response to changes in these factors.

Which of the Following Factors Influence the Position of the Long-Run