In the long run, total national output:
A) is not impacted by the price level.
B) has a positive relationship with the price level.
C) has a negative relationship with the price level.
D) varies widely at a fixed, given price level.

Question

Quizplus · Accepted Answer

In the long run, total national output is determined by factors such as technology, capital, and labor, and is not impacted by the price level. Price level changes affect the economy in the short run, but in the long run, the economy adjusts, and output is determined by supply-side factors, not the price level.

In the Long Run, Total National Output