Question

the long - run aggregate supply curve will not shift if there is a change in
a. amount of capital.
b. amount of labor.
c. the price level.
d. technology.
all of the following will shift the short - run aggregate supply and the long - run aggregate supply except for
a. a depletion of raw materials.
b. increased training and education of the labor force.
c. decreased competition.
d. a temporary change in input prices.

Explanation:

• For the first question:
• The long - run aggregate supply curve (LRAS) is vertical at the full - employment level of output. It is determined by the economy's productive capacity, which depends on the amount of capital, labor, and technology. A change in the price level only causes a movement along the LRAS curve, not a shift.
• For the second question:
• A temporary change in input prices affects only the short - run aggregate supply (SRAS) curve. It does not change the economy's long - run productive capacity (so no shift in LRAS). Depletion of raw materials, increased training (which affects labor quality), and decreased competition (which can affect production efficiency in the long - run) can shift both SRAS and LRAS.

Answer:

• First question: C. the price level
• Second question: D. a temporary change in input prices