Business-cycle macroeconomics involves increases in Real GDP that result from a rightward-shifting LRAS curve.

Question

Quizplus · Accepted Answer

Business-cycle macroeconomics involves short-term fluctuations in Real GDP, which are represented by movements along the SRAS curve. LRAS represents the long-run potential output of an economy, and a rightward shift in LRAS would indicate an increase in the economy's capacity to produce goods and services over the long run, but not necessarily a short-term increase in Real GDP.

Business-Cycle Macroeconomics Involves Increases in Real GDP That Result from a Rightward-Shifting