Which of the following does not influence the position of the long-run aggregate supply curve?
A) the quantity of raw materials available for production
B) the quantity of capital used in production
C) the quality of the labor force
D) the actual price level
E) the size of the labor force

Question

Quizplus · Accepted Answer

The position of the long-run aggregate supply curve is determined by factors such as technological progress, institutional factors, and the factors of production (including the quantity and quality of labor, and the quantity of physical capital and natural resources). The actual price level (which is reflected in movements along the aggregate supply curve) does not affect the position of the long-run aggregate supply curve.

Which of the Following Does Not Influence the Position of the Long-Run