If the price level rises by 10 percent,then all else being equal,the long-run quantity of aggregate supply will
A) increase by 10 percent.
B) decrease by 10 percent.
C) remain unchanged.
D) increase by more than 10 percent.
E) increase by less than 10 percent.

Question

Quizplus · Accepted Answer

In the long-run, all factors of production can be adjusted and there is no output gap. Therefore, the quantity of aggregate supply will remain unchanged in response to a change in the price level.

If the Price Level Rises by 10 Percent,then All Else