Economic growth is represented by a:
a. leftward shift of a production possibilities curve
b. rightward shift of the long-run aggregate supply curve (LRAS).
c. horizontal long-run aggregate supply curve (LRAS).
d. downward shift of an aggregate production function.
b
You might also like to view...
In a battle of the sexes game, each player prefers a different Nash equilibrium
Indicate whether the statement is true or false
Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, ln(Q) = a - bP + cI, where Q is quantity demanded, P is the product price, and I is income
Here, 100 c represents the percentage change in quantity demanded given a one unit increase in income. For a normal good, we should expect the value of c to be: A) positive. B) negative. C) positive or negative. D) We do not have enough information to answer this question.