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 
-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 is determined by the shift from AD1 to AD2 and SRAS1 to SRAS2, which results in a new equilibrium at a higher GDP level. The percentage increase from the initial GDP level at point A to the new GDP level in year 2 corresponds to a 7.3% growth rate.

Figure 24-4 -Refer to Figure 24-4.In the Figure Above,AD1,LRAS1 and SRAS1 Denote