Which of the following is not a determinant of the long-run level of real GDP?

Question

a. Available technology
b. The price level
c. The amount of capital used by firms
d. Available stock of human capital

Answer 1

The correct answer is b. The price level.

In the long run, the level of real GDP is determined by factors such as available technology, the amount of capital used by firms, and the available stock of human capital. The price level, however, primarily affects nominal variables and does not determine the long-run output of an economy.