Q Which of following determines the supply curve? I Supply curves of factor resources II Total Money supply flowing in the economy III Cost of running operating capacity at a given level IV Prices of related goods. I & III III & IV I, II, III, & IV I, II, III
A?
A?
A?
How about B?
A
D? Wat’s the correct answer?
I would go with D?
D?
It’s D. I missed II also. The Qbank doesn’t give a good explanation but said only the following: The total money supply in the economy determines the value plotted on the price-axis of a supply curve. What exactly does it mean? anyone recall where in the notes talking about it? Thanks! Steve
Session 5 | Reading 23 | LOS a “Long-run aggregate supply is vertical at potential (full-employment) real GDP and can change as a result of changes in the labor force, the amount of capital in the economy, or in technology.” I missed II too.