Which of the following is not held constant in the short run when determining the aggregate supply curve?
A)Interest rates
B)Rent
C)Wages
D)Profit
E)Price level

Question

Quizplus · Accepted Answer

In the short run, wages, rent, and profit are all fixed costs that are not easily adjusted. The aggregate supply curve is determined by the level of input costs such as wages, rent, and profit, but the price level can vary in the short run as producers may adjust the quantity of output supplied without changing the price level. Therefore, the price level is not held constant in the short run when determining the aggregate supply curve.

Which of the Following Is Not Held Constant in the Short