Question

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

Answer 1

Answer: C. Changes in the price level

Step-by-step explanation:

In the long run only change in capital, change in the amount of labour and technological changes affects the level of aggregate supply because everything in the economy is assumed to be used optimally. Therefore, on a LONG RUN price level does not affect the level of aggregate supply.