In the long run the overall price level is mainly determined by:

Question

Quizplus · Accepted Answer

Changes in the money supply, specifically an increase in the money supply, can lead to inflation and an increase in the overall price level. This is because there is more money circulating in the economy, which can lead to an increase in demand for goods and services and, ultimately, higher prices. The other options listed may have some influence on prices in the short-term, but they are not the main determinants of the overall price level in the long run.

In the Long Run the Overall Price Level Is Mainly