Question

Which among the following determinants of aggregate supply are held to be constant in the short run?

• A. Natural resources
• B. Stock of capital
• C. State of technical knowledge
• D. All of the above

Answer 1

The correct option is D All of the above

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.