Suppose the long run potential output is given by the production function Yp = A*F(N,K) where A is the level of technology, N is the levelof employment and K is the stock of capital. Which of the following is CORRECT?Higher interest rates would shift LRAS to the rightO b. Growth in the labor force will shift LRAS to the rightOc An earthquake will shift LRAS (long-run aggregate supply) to the rightO d. Improved technology will shift LRAS to the left

Production Function: Yp = A*F(N,K) there is no effect of interest rate in the long-run production…

Suppose the long run potential output is given by the production function Yp = A*F(N,K) where A is the level of technology, N is the level of employment and K is the stock of capital. Which of the following is CORRECT? Oa. Higher interest rates would shift LRAS to the right O b. Growth in the labor force will shift LRAS to the right O. An earthquake will shift LRAS (long-run aggregate supply) to the right O d. Improved technology will shift LRAS to the left

Suppose the long run potential output is given by the production function Yp = A*F(N,K) where A is the level of technology, N is the level of employment and K is the stock of capital. Which of the following is CORRECT? Oa. Higher interest rates would shift LRAS to the right O b. Growth in the labor force will shift LRAS to the right O. An earthquake will shift LRAS (long-run aggregate supply) to the right O d. Improved technology will shift LRAS to the left

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model

Section: Chapter Questions

Problem 3CQ

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