Question

Which among the following determinants of aggregate supply is held to be variable in the short run?

• A. Human resources
• B. Stock of capital
• C. State of technology
• D. Natural resources

Answer 1

The correct option is A Human resources

Aggregate supply refers to the sales proceeds from the desired level of output in the economy during an accounting year. Human resources which refers to labor is held to be variable in short run as its application can be changed depending on the requirement of the output in the market. Human resources can be increased or decreased as per the requirement in the market.