Refer to the above figure. The market equilibrium quantity is Q1. Point Q2 represents the optimal amount of production. This indicates that there is

Use a graph to show the effects of a contractionary monetary policy to reduce inflation and move an economy back to potential real GDP. Explain what happens to aggregate demand, real GDP, and the price level

What will be an ideal response?

Without an increase in the supplies of factors of production, how can a nation achieve economic growth?

A) by producing more high-value goods and fewer low-value goods B) by increasing the prices of factors of production C) through technological advancement which enables more output with the same quantity of resources D) by lowering the prices of factors of production