When potential GDP increases, short-run aggregate supply also increases, but long-run aggregate supply does not change

Indicate whether the statement is true or false

FALSE

Economics

You might also like to view...

This Application addresses the economic concept of

A) procyclical investment. B) financial intermediaries. C) present value. D) the multiplier-accelerator model.

Economics

To reach general equilibrium, the price level adjusts to shift the ________ until it intersects with the ________

A) IS curve; FE line and LM curve B) FE line; LM and IS curves C) LM curve; FE line and IS curve D) ND curve; FE line and NS curve

Economics