The level of long-run aggregate supply is affected by all of the following except:Question 5Answera.changes in the capital stock.b.changes in the number of workers.c.changes in the price level.d.changes in the technology.

The level of long-run aggregate supply is not affected by c. changes in the price level.

Here's why:

a. Changes in the capital stock: This affects the level of long-run aggregate supply because the capital stock (machinery, buildings, etc.) is a key determinant of a country's productive capacity. If the capital stock increases, the long-run aggregate supply will increase as well, all else being equal.

b. Changes in the number of workers: This also affects the level of long-run aggregate supply. More workers mean more labor, which can increase the production of goods and services, thus increasing the long-run aggregate supply.

d. Changes in the technology: Technological progress can make the production process more efficient, allowing more output to be produced with the same amount of inputs. This increases the long-run aggregate supply.

c. Changes in the price level: In the long run, the aggregate supply is assumed to be independent of the price level. This is based on the classical dichotomy, which separates real and nominal variables. In the long run, real variables (like output) are determined by factors such as technology, capital, and labor, not by nominal variables like the price level. Therefore, changes in the price level do not affect the level of long-run aggregate supply.