Along the long-run aggregate supply curve, the level of RGDP supplied ____ with increases in the price level.
A)does not change
B)increases
C)decreases
D)None of the above.

Question

Quizplus · Accepted Answer

Along the long-run aggregate supply curve, the level of RGDP supplied is determined by the economy's potential output, which is determined by factors such as labor, capital, technology, and natural resources. Therefore, changes in the price level do not affect the level of RGDP supplied in the long run, as the economy will adjust to full employment over time.

Along the Long-Run Aggregate Supply Curve, the Level of RGDP