The determinants of aggregate supply
A) are consumption, investment, government, and net export spending.
B) explain why real domestic output and the price level are directly related.
C) explain the three distinct ranges of the aggregate supply curve.
D) include resource prices and resource productivity.

Question

Quizplus · Accepted Answer

The determinants of aggregate supply include resource prices and resource productivity. Resource prices refer to the cost of the resources used in the production process, while resource productivity refers to the efficiency with which these resources are used. Changes in either of these factors can shift the aggregate supply curve.

The Determinants of Aggregate Supply