Along the long-run aggregate supply curve, the level of real GDP supplied:
A)does not change with increases in the price level.
B)increases with increases in the price level.
C)decreases with decreases in the price level.
D)decreases with increases in the level of investment.
E)increases with decreases in the level of investment.

Question

Quizplus · Accepted Answer

Along the long-run aggregate supply curve, the level of real GDP supplied is determined by factors other than the price level, such as technology, factors of production, and institutions. Therefore, changes in the price level do not affect the level of real GDP supplied.

Along the Long-Run Aggregate Supply Curve, the Level of Real