If the prices of goods and services increase, long-run aggregate _______ will _______.
A) supply; increase
B) supply; decrease
C) supply; stay the same
D) demand; increase

Question

Quizplus · Accepted Answer

In the long run, aggregate supply is not affected by the prices of goods and services because it is determined by factors like technology, capital, and labor, which are not dependent on the price level.

If the Prices of Goods and Services Increase, Long-Run Aggregate