Which of the following is NOT assumed to be constant along a short-run aggregate supply curve?
A) the actual price level
B) the state of technology
C) the size and quality of the labour force
D) the size and quality of the capital stock

Question

Which of the following is NOT assumed to be constant along a short-run aggregate supply curve?  
A) the actual price level 
B) the state of technology 
C) the size and quality of the labour force 
D) the size and quality of the capital stock

Quizplus · Accepted Answer

In the short run, the actual price level is not assumed to be constant along the short-run aggregate supply curve. The curve itself represents how the quantity of goods and services supplied varies with changes in the price level, holding other factors like technology, labor, and capital constant.

Which of the Following Is NOT Assumed to Be Constant