The level of aggregate supply in the long run is not affected by
A)changes in technology.
B)changes in the capital stock.
C)changes in the price level.
D)changes in the number of workers.

Question

Quizplus · Accepted Answer

According to the classical view of macroeconomics, the level of aggregate supply in the long run is determined by the factors of production such as labor, capital, and technology. Changes in the price level (inflation) only affect the nominal values of output and input prices, and do not have any significant impact on the level of aggregate supply in the long run. Therefore, choice C is the correct answer.

The Level of Aggregate Supply in the Long Run Is