161k views
3 votes
All of these explain a change in long-run aggregate supply except: increases in business taxes. increases in productivity. changes in government spending. changes in resource prices.

User Martidis
by
7.5k points

1 Answer

4 votes
Long-term aggregate supply (LAS) gives the representation of the potential output and the relationship between the price level and output in the long-run. The input prices are not constant. The changes in aggregate demand only cause a temporary change in an economy's total output, so the long-run aggregate supply curve is perfectly vertical. In the long-run, there is exactly one quantity that will be supplied. The changes in resource prices is not LAS, but short-term aggregate supply, because depends on the price of the input.
User Amirouche Douda
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.