Exhibit 17-3 -Refer to Exhibit 17-3 Assume That the Starting Point on 17-3

Exhibit 17-3


-Refer to Exhibit 17-3 Assume that the starting point on the production function is point A. After an increase in the quantity of labor,there would be a ______________________ which would shift the LRAS curve from LRAS₁to _______________ resulting in _______________..

A) movement along the production function to point C; LRAS₂; economic growth
B) shifting upward of the production function to point B; LRAS₂; economic growth
C) movement along the production function to point C; LRAS₃; a shrinking economy
D) shifting upward of the production function to point B; LRAS₃; a shrinking economy