Aggregate supply factors:

Question

Quizplus · Accepted Answer

Aggregate supply factors include input prices and productivity, which influence the quantity of goods and services firms are willing and able to supply at each price level. Technological progress is not a factor included in aggregate supply. A is incorrect because those are components of aggregate demand. B is incorrect because it explains the relationship between real output and the price level, but not the factors that influence aggregate supply. C is incorrect because it explains the shape of the aggregate supply curve, but not the factors that influence it.

Aggregate Supply Factors