Figure 24-4
-Refer to Figure 24-4. In the figure above, AD₁, LRAS₁ and SRAS₁ denote AD, LRAS and SRAS in year 1, while AD₂, LRAS₂ and SRAS₂ denote AD, LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the actual growth rate in GDP in year 2?

Question

Figure 24-4 Figure 24-4 -Refer to Figure 24-4. In the figure above, AD1, LRAS1 and SRAS1 denote AD, LRAS and SRAS in year 1, while AD2, LRAS2 and SRAS2 denote AD, LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the actual growth rate in GDP in year 2? A) 2.5% B) 7.3% C) 8.0% D) 10.0%

Figure 24-4 -Refer to Figure 24-4. In the figure above, AD<sub>1</sub>, LRAS<sub>1</sub> and SRAS<sub>1</sub> denote AD, LRAS and SRAS in year 1, while AD<sub>2</sub>, LRAS<sub>2</sub> and SRAS<sub>2</sub> denote AD, LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the actual growth rate in GDP in year 2? A) 2.5% B) 7.3% C) 8.0% D) 10.0%

-Refer to Figure 24-4. In the figure above, AD₁, LRAS₁ and SRAS₁ denote AD, LRAS and SRAS in year 1, while AD₂, LRAS₂ and SRAS₂ denote AD, LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the actual growth rate in GDP in year 2?

Quizplus · Accepted Answer

The actual growth rate in GDP in year 2 is determined by the shift from AD1 to AD2 and the corresponding movement along the SRAS curve, which results in a new equilibrium point. The given options suggest that the correct growth rate is 7.3%.

Figure 24-4 -Refer to Figure 24-4. in the Figure Above, AD1, LRAS1

Figure 24-4 -Refer to Figure 24-4. in the Figure Above, AD₁, LRAS₁