Which of the following is not a determinant of aggregate supply capability?
A)The supply of labor
B)Computers
C)Aggregate demand
D)The amount of factories in the economy
E)Available know-how

Question

Quizplus · Accepted Answer

Aggregate demand is not a determinant of aggregate supply capability. Aggregate supply capability refers to the total amount of goods and services an economy can produce at a given time, which is determined by factors such as the supply of labor, capital, technology, and natural resources. Aggregate demand, on the other hand, refers to the total amount of goods and services that consumers, businesses, and governments are willing and able to buy at a given price level. While aggregate demand can affect the overall level of economic activity and employment, it does not directly influence the supply-side factors that determine the economy's productive capacity.

Which of the Following Is Not a Determinant of Aggregate