2.3.3 Long-run AS

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Question 11

Illustrate the effect of a sustained increase in national productivity on the Classical (monetarist) long-run aggregate supply (LRAS) curve on the coordinate system provided below. Your diagram should show the initial curve labeled $LRAS1\text{LRAS}_1$ , the new curve labeled $LRAS2\text{LRAS}_2$ , and a clear indication of the direction of the shift.

Coordinate system with Price Level on the vertical axis and Real National Output on the horizontal axis

[1]

2.3.3 Long-run AS

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Question 11

Illustrate the effect of a sustained increase in national productivity on the Classical (monetarist) long-run aggregate supply (LRAS) curve on the coordinate system provided below. Your diagram should show the initial curve labeled $LRAS1\text{LRAS}_1$ , the new curve labeled $LRAS2\text{LRAS}_2$ , and a clear indication of the direction of the shift.

Coordinate system with Price Level on the vertical axis and Real National Output on the horizontal axis

[1]

2.3.3 Long-run AS

Question 11

2.3.3 Long-run AS Questions

2.3.3 Long-run AS

Question 11

2.3.3 Long-run AS Questions