ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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State of technology
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Resource prices
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Rules providing production incentives
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Rate of production
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Detailed explanation-1: -Answer and Explanation: The aggregate supply curve represents a link between the real GDP supplied and the price level, other factors held constant. From this definition, it is clear that the price level is not assumed to be constant as we move along the aggregate supply curve.
Detailed explanation-2: -Government spending and taxes to alter macroeconomic outcomes. Which of the following is not associated with the aggregate supply curve? Factors of production.
Detailed explanation-3: -The aggregate supply curve is based on the following key assumptions: Prices of the factors of production-the money wage rate for labour in particular-are constant. The stock of capital equipment-the buildings and equipment used in the production process-and the technology of production are constant.
Detailed explanation-4: -The correct answer is A) Sales tax receipts. In the above-given statement, sales tax receipts are not included in the aggregate demand components.
Detailed explanation-5: -Among the factors held constant in drawing a short-run aggregate supply curve are the capital stock, the stock of natural resources, the level of technology, and the prices of factors of production.