Figure 24-4
-Refer to Figure 24-4. In the figure above, LRAS₁ and SRAS₁ denote LRAS and SRAS in year 1, while LRAS₂ and SRAS₂ denote LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the growth rate in potential GDP in year 2?

Question

Figure 24-4 Figure 24-4 -Refer to Figure 24-4. In the figure above, LRAS1 and SRAS1 denote LRAS and SRAS in year 1, while LRAS2 and SRAS2 denote LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the growth rate in potential GDP in year 2? A) 8% B) 9.1% C) 10% D) 12%

Figure 24-4 -Refer to Figure 24-4. In the figure above, LRAS<sub>1</sub> and SRAS<sub>1</sub> denote LRAS and SRAS in year 1, while LRAS<sub>2</sub> and SRAS<sub>2</sub> denote LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the growth rate in potential GDP in year 2? A) 8% B) 9.1% C) 10% D) 12%

-Refer to Figure 24-4. In the figure above, LRAS₁ and SRAS₁ denote LRAS and SRAS in year 1, while LRAS₂ and SRAS₂ denote LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the growth rate in potential GDP in year 2?

Quizplus · Accepted Answer

The growth rate in potential GDP is determined by the shift from LRAS₁ to LRAS₂. If the figure shows a 10% increase in the potential GDP from year 1 to year 2, then the correct answer is 10%.

Figure 24-4 -Refer to Figure 24-4. in the Figure Above, LRAS1 and Above

Figure 24-4 -Refer to Figure 24-4. in the Figure Above, LRAS₁ and Above