Question

Which of the following factors will influence the position of the long-run aggregate supply curve? Check all that apply.

Answer 1

Answer:

The correct answers are letters "A", "B", "C", and "D": The size of the labor force; the amount of available natural resources; the inflation rate; and the level of technological knowledge and entrepreneurship.

Explanation:

Aggregate Supply is the total supply of goods and services an economy produces in a given period. It is the amount of goods companies plan to sell at a given price level. In the long run, shifts in aggregate supply can come from changes in the natural resources available, the size and quality of labor, technological innovation, wage increases, higher production costs, changes in producer taxes and subsidies, and changes in inflation.