Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition)
18th Edition
ISBN: 9780134004945
Author: Roger LeRoy Miller
Publisher: PEARSON
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Question
Chapter 10, Problem 10.1LO
To determine
The concept of long run
Concept information:
Economic growth rate refers to the rate at which the output of an economy increases overtime. It is used as an indicator of economic well-being of a nation. Economic growth is used as the most powerful instrument for reducing poverty and improving the standard of living of the residents of a country.
Expert Solution & Answer
Explanation of Solution
Long-run
The equation for long-run aggregate supply curve is given by:
Here,
An increase in economic growth will result in a rightward shift in the long-run aggregate supply curve from LRAS1 to LRAS2 as shown below:
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Chapter 10 Solutions
Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition)
Ch. 10 - Prob. 10.1LOCh. 10 - Prob. 10.2LOCh. 10 - Prob. 10.3LOCh. 10 - Prob. 10.4LOCh. 10 - Prob. 10.1SCCh. 10 - Prob. 10.2SCCh. 10 - Prob. 10.3SCCh. 10 - Prob. 10.4SCCh. 10 - Prob. 1CTQCh. 10 - Prob. 2CTQ
Ch. 10 - Prob. 1FCTCh. 10 - Prob. 2FCTCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17P
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