The location of the ____ curve depends on the economy\'s supply of land, supply
ID: 1157132 • Letter: T
Question
The location of the ____ curve depends on the economy's supply of land, supply of capital, supply of labor, entrepreneurial ability, and productivity of its scarce resources; it does not depend on the price level.
The location of the_curve depends on the economy's supply of land. supply of capital, supply of labor, entrepreneurial ability, and productivity of its scarce resources; it does not depend on the price level. Select one: o a. Yield o b. Short run aggregate supply O c. Aggregate demand o d. Long run aggregate supply.Explanation / Answer
The answer is option D) Long run aggregate supply curve.
Explanation: The long run aggregate supply curve is vertical ie operating at full employment so not affected by price level. It is shifted when the factors of production change and not affected by price. The long run supply curve is located at the potential real GDP and shifts with factors like supply of land , capital ,productivity of resources. Increased productivity will shift it to right.
So correct answer is D) long run aggregate supply curve.
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