In Figure 17.6,long-run economic growth implies a A)Shift from AD₁ to AD₂. B)Move from point A to point B. C)Shift from LRAS₁ to LRAS₂. D)Move from point D to point C.

Question

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Long-run economic growth implies a shift in the long-run aggregate supply curve (LRAS) to the right, indicating an increase in the economy's potential output. This is shown in the diagram as a shift from LRAS₁ to LRAS₂.

In Figure 17.6,long-Run Economic Growth Implies a