Suppose that the position of a nation\'s long-run aggregate supply (LRAS) curve

Question

Suppose that the position of a nation's long-run aggregate supply (LRAS) curve has not changed, but its long-run equilibrium price level has increased. FACTOR a. b. c. d. e. f. Arise in the value of the domestic currency relative to other world currencies An increase in the quantity of money in circulation An increase in the labor force participation rate A decrease in taxes Arise in real incomes of countries that are key trading partners of this nation Increased long-run economic growth Of the factors given above, which could account for the price level increase with constant LRAS? 0 A. Factors c and f. OB. Factors b, d, and e. OC. Factors b, c, d, and f D. Factors a, c, and f

Explanation / Answer

The answer is B. That is the factors b,d e. All these doesnot increase the production but it affects the price level.

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