Question

The determinants of aggregate supply are:
i. Natural resources
ii. Human resources
iii. Stock of capital
iv. State of technical knowledge

• A. i, ii and iiv
• B. i, ii and iii
• C. ii, iii and iv
• D. i, ii, iii, and iv

Answer 1

The correct option is D i, ii, iii, and iv

Aggregate supply refers to the sales proceeds from the desired level of output in the economy during an accounting year. It is through this output only that the producer sector generates income in the economy at any given level of employment. The determinants of aggregate supply are natural resources, Human resources which refers to labor, stock of capital which refers to machinery and tools used in production and state of technical knowledge.