Suppose that the position of a nation's long-run aggregate supply curve has not changed, but its long-run equilibrium price level has increased. Which of the following factors might account for this event?

a. A rise in the value of the domestic currency relative to other world currencies.
b. An increase in the quantity of money in circulation.
c. An increase in the labor force participation rate
d. A decrease in taxes
e. A rise in real incomes of countries that are key trading partners of this nation.
f. Increased long-run economic growth.

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To determine which factor might account for the increase in long-run equilibrium price level while the position of the long-run aggregate supply curve remains unchanged, we need to consider the factors that can affect the aggregate demand curve. Let's analyze each option:

a. A rise in the value of the domestic currency relative to other world currencies: This would actually decrease the price level because it makes imports cheaper and exports more expensive, reducing aggregate demand. Therefore, option a can be ruled out.

b. An increase in the quantity of money in circulation: This would increase aggregate demand, leading to an increase in the price level. Therefore, option b is a candidate for the correct answer.

c. An increase in the labor force participation rate: This would increase the potential output of the economy in the long run, but it would not directly impact the price level. So, option c is not a likely factor.

d. A decrease in taxes: This would stimulate consumer spending and increase aggregate demand, potentially leading to an increase in the price level. Option d is a possible factor.

e. A rise in real incomes of countries that are key trading partners of this nation: This could potentially benefit the nation through increased exports, but it would not directly impact the price level. Option e is not a likely factor.

f. Increased long-run economic growth: This would likely increase the potential output of the economy, but it would not directly impact the price level. Therefore, option f is not a likely factor.

Based on this analysis, options b (an increase in the quantity of money in circulation) and d (a decrease in taxes) are the most likely factors that could account for an increase in the long-run equilibrium price level. However, without further information, it is not possible to determine the exact factor responsible for the increase.