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Chapter 10, Problem 2FCT
To determine

Why might a return of the U.S population growth rate to its prior level also tend to boost growth of U.S long run aggregate supply?

Concept introduction:

  • Real GDP is the Nominal GDP which is adjusted for the changes in price.
  • The growth rate of Real GDP measures the growth rate of the economy.
  • The supply side factors that contribute to the growth of the Real GDP are −
  1. Level of Infrastructure
  2. Human Capital
  3. Technology Development
  4. Strength of Labor Market

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