Question:
How can a Shift in the LRAS to the Right affect all 4 Macroeconomic Performance Positively? -Is the opposite True?
Author: eric_galvaoAnswer:
-LRAS Increasing can lead to: -Economic Growing to the new LRAS Vertical Line -Employment stays at 100% so no Chance [LRAS means no Spare Capacity, like Unemployment] -Price Level will Fall and thus Balance of Payments [Exports] will be Better off -The Opposite is True. LRAS going Left worsens all 4
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![-LRAS Increasing can lead to:
-Economic Growing to the new LRAS Vertical Line
-Employment stays at 100% so no Chance [LRAS means no Spare Capacity, like Unemployment]
-Price Level will Fall and thus Balance of Payments [Exports] will be Better off
-The Opposite is True. LRAS going Left worsens all 4](https://markdown.memory.com/eq_uploads/1110385/question_image_40302c59-afe8-4c8a-a128-f213f9c08d72.jpg)
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eric_galvao