Which of the following components is NOT included in the equation for the short-run aggregate supply curve?

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve is based on the relationship between the price level and output in the short run, holding constant all other factors that could affect output. The components included in the equation are inflation, expected inflation, and the output gap. The nominal interest rate is not directly related to the short-run aggregate supply curve.

Which of the Following Components Is NOT Included in the Equation