Asked by Dominic Gomez on May 23, 2024
Verified
Which of the following is not a determinant of the long-run level of real GDP?
A) The price level
B) The amount of capital used by firms
C) Available stock of human capital
D) Available technology
Real GDP
Gross Domestic Product adjusted for inflation, providing a more accurate reflection of an economy's size and how it's growing over time.
Price Level
An index or measure that represents the average prices of goods and services in an economy at a given time.
Human Capital
The knowledge and skills that workers acquire through education and on-the-job training
- Comprehend the determinants of the long-run level of real GDP and the impact of technology changes on output and prices.
Verified Answer
BG
Bianca GomezMay 27, 2024
Final Answer :
A
Explanation :
The long-run level of real GDP is determined by factors such as the amount of capital used by firms, the available stock of human capital, and the available technology, which are all related to the economy's productive capacity. The price level, on the other hand, is not a determinant of the long-run level of real GDP; it affects the economy in the short run through demand-side factors.
Learning Objectives
- Comprehend the determinants of the long-run level of real GDP and the impact of technology changes on output and prices.