The long-run aggregate supply curve reflects the idea that in the long run, output is determined only by
A) the factors of production.
B) given technology.
C) aggregate demand.
D) both A and B

Question

Quizplus · Accepted Answer

In the long run, output is determined by the factors of production (such as labor, capital, and technology) and given technology. Therefore, the long-run aggregate supply curve reflects both A (factors of production) and B (given technology). It is not affected by changes in aggregate demand, which only affects short-run output.

The Long-Run Aggregate Supply Curve Reflects the Idea That in the Long