In the long run,the level of production in the economy
A)is independent of the price level.
B)determines how much money is in the economy.
C)depends on the price level in the economy
D)does not determine the level level of potential output

Question

Quizplus · Accepted Answer

The level of production in the economy is determined by factors such as technology, labor force, and capital stock, and is not directly related to the price level. While changes in price levels may have short-term effects on production, in the long run, production is determined by the economy's capacity for output.

In the Long Run,the Level of Production in the Economy