Figure 13-4
-Refer to Figure 13-4.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 13-4 
-Refer to Figure 13-4.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 calculated by comparing the shift from LRAS1 to LRAS2. If the shift represents a 10% increase, then the growth rate is 10%.

Figure 13-4 -Refer to Figure 13-4.In the Figure Above,LRAS1 and SRAS1 Denote