If potential GDP increases, what happens to aggregate supply? Does the LAS curve shift or is there a movement along the LAS curve? Does the SAS curve shift or is there a movement along the SAS curve?
What will be an ideal response?
If potential GDP increases both long-run aggregate supply and short-run aggregate supply increase and the LAS curve and SAS curve shift rightward.
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In the figure above, with international trade American consumers buy ________ million shirts per year
A) 48 B) 32 C) 16 D) 24
A decrease in the number of competitors in a monopolistically competitive market causes an increase in the price elasticity of demand for the output of each of the remaining firms in the market
Indicate whether the statement is true or false
Countries that have indexed most contracts, wages, and interest rates to inflation have managed to sustain solid levels of economic growth for sustained periods with levels of inflation at ________, which would sound high by recent U.S. standards.
a. 10 percent to 30 percent per year b. 30 percen to 40 percent per year c. 5 percent to 10 percent per year d. 40 percent to 50 percent per year
Price-discriminating firms that sell in two markets will charge higher prices in the market, ceteris paribus,
A. With a higher positive cross-price elasticity of demand with respect to substitutes. B. With lower incomes. C. With the more price-inelastic demand. D. With the more income-elastic demand.