The concept of long run
Explanation of Solution
Long-run
Where,
While, economic growth refers to the growth in the output of economy overtime. Increase in economic growth will therefore result in a rightward shift in the long-run aggregate supply curve from LRAS1 to LRAS2.
Y=Y..
Introduction:
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.
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Economics Today, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (19th Edition)