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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can an Output Gap be seen via AD and AS Curves

Author: eric_galvao



Answer:

-Points on the LRAS show the Economy being at Full Capacity as its using all Resources -Points to the Left of the LRAS show the Economy can Supply to a greater level. Negative Output Gap -Point to the Right of the LRAS show the Economy is Overheating itself and a Positive Output Gap is Present


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-Points on the LRAS show the Economy being at Full Capacity as its using all Resources 
-Points to the Left of the LRAS show the Economy can Supply to a greater level. Negative Output Gap
-Point to the Right of the LRAS show the Economy is Overheating itself and a Positive Output Gap is Present
1 answer(s) in total