LRASInflationSRAS 3SRAS 2IT 3SRAS 0,1TT 2AD1ADOY, = Y3 Y 2Y1Refer to the above diagram. In looking at the shape of the LRAS, in the long run, wecan assume that both input prices and output prices are flexible.TrueFalse

The above graph shows represent the verticle line parallel to X-axis. The verticle line is the LRAS…

Answered: o the above diagram. In looking at the…

o the above diagram. In looking at the shape of the LRAS, in sume that both input prices and output prices are flexible.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions

Section17.2: A Production Function And Economic Growth

Problem 4ST

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Concept explainers

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

Question

LRAS
Inflation
SRAS 3
SRAS 2
IT 3
SRAS 0,1
TT 2
AD1
ADO
Y, = Y3 Y 2
Y1
Refer to the above diagram. In looking at the shape of the LRAS, in the long run, we
can assume that both input prices and output prices are flexible.
True
False

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