Which of the following would NOT shift a nation's long-run aggregate supply curve?
A) Technology in the nation changes.
B) The level of human capital in the nation changes.
C) The level of investment in physical capital changes.
D) The nation's average price level changes.

Question

Quizplus · Accepted Answer

The long-run aggregate supply curve represents the total output a nation can produce when resources are fully employed, and it is not affected by changes in the price level. Changes in technology, human capital, and physical capital investment can shift this curve by affecting the nation's productive capacity, but changes in the average price level do not, as they are related to the value of money rather than the physical capacity to produce goods and services.

Which of the Following Would NOT Shift a Nation's Long-Run