Which of the following will cause the long run aggregate supply (LRAS) curve to shift to the right? A a. An increase in interest rates B b. A prolonged decrease in real investment C) c. A fall in the price level d. An increase labour productivity
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It shows the level of real GDP that can be produced at full employment in the long run. The LRAS curve is vertical because it is determined by the economy's potential output, which is determined by factors such as the quantity and quality of labor, capital stock, Show more…
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