The correct option for the depiction of long-run
Answer to Problem 4MCQ
Option c is correct.
Explanation of Solution
Explanation for the correct option:
c.
In the long-run, economic growth can be shown through the rightward shift of the long-run
Explanation for incorrect options:
a.
Leftward shift in aggregate demand shows a reduction in consumer demand for the product. Therefore, option a is incorrect.
b.
Rightward shift depicts the relationship between the growth in aggregate demand due to the change in the aggregate price level. Therefore, option b is the incorrect answer.
d.
Rightward shift in the short-run aggregate supply curve can depict only a short-term growth rate. Therefore, option d is incorrect.
e.
Leftward shift in the aggregate supply curve represents the reduction in the real
Real GDP: Real Gross Domestic Product refers to the measure that determines the value of goods and services which are produced in the country within a specific time frame after adjusting for inflation.
Chapter 40 Solutions
Krugman's Economics For The Ap® Course
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