Long- run aggregate supply will decrease for all of the following reasons EXCEPT
A) decreased capital.
B) decreased human capital.
C) reduced money wages.
D) decrease in the level of full employment.

Question

Quizplus · Accepted Answer

Reduced money wages do not affect long-run aggregate supply, as they are a nominal variable and do not impact the economy's productive capacity.

Long- Run Aggregate Supply Will Decrease for All of the Following