Which of the following does not determine a country's ability to produce goods and services in the long run? A

Economics Dec 23, 2020

Which of the following does not determine a country's ability to produce goods and services in the long run?

A. Resources

B. Technology

C. Institutions

D. Price level

E. All of the above

Expert Solution

Option D. Price level is correct.

When the manufacturing units supply output in the long run, the price associated with such output does not matter to them. This makes the supply curve parallel to the price axis. Only resource quality and technology level matter in the long run.

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