All else being equal,as the population ages and many people leave the labor force,
A) the unemployment rate will rise.
B) the price level will fall.
C) long-run aggregate supply will fall.
D) long-run aggregate supply will be unaffected.
E) aggregate demand must rise.

Question

Quizplus · Accepted Answer

As the population ages and people leave the labor force, the potential output of the economy decreases, leading to a fall in long-run aggregate supply.

All Else Being Equal,as the Population Ages and Many People