When potential GDP increases,short-run aggregate supply also increases,but long-run aggregate supply does not change.

Name: When potential GDP increases,short-run aggregate supply also increases,but long-run aggregate supply does not change.
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Question

Quizplus · Accepted Answer

Long-run aggregate supply shifts to the right when potential GDP increases, reflecting the economy's increased capacity to produce goods and services, while short-run aggregate supply may not necessarily change as it is influenced by temporary factors.

When Potential GDP Increases,short-Run Aggregate Supply Also Increases,but Long-Run Aggregate