erinsnake254Lv1
9 Nov 2021
Problem 26
Page 600
Section: REVIEW QUESTIONS
Chapter 24: The Aggregate Demand/Aggregate Supply Model
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9 Nov 2021
Introduction
Potential GDP measures what the economy could produce.
if all resources (Land, Labor, and Capital) were fully employed at their normal level of utilization. It refers to an economy's productive capacity in a physical sense. A rise in potential output (GDP) and employment, as well as real economic growth, is indicated by an outward movement of the LRAS.
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