Which of the following does NOT determine the long-run level of real GDP?
A) the price level
B) the supply of labour
C) available natural resources
D) available technology

Question

Quizplus · Accepted Answer

The price level does not determine the long-run level of real GDP as it only affects the short run. In the long run, changes in the price level do not affect the potential output of an economy. Real GDP is determined by the supply of labour, available natural resources, and available technology, as these are the factors that determine the economy's productive capacity in the long run.

Which of the Following Does NOT Determine the Long-Run Level