Again, let labor be the variable shown on the horizontal axis and Real GDP on the vertical

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Again, let labor be the variable shown on the horizontal axis and Real GDP on the vertical axis. Suppose there is an increase in physical capital. Does the increase lead to a movement along the production function or to a shift in the production function? Explain your answer. Next, draw the change in the LRAS curve that results from an increase in physical capital.
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Economics

ISBN: 978-1285738321

12th edition

Authors: Roger A. Arnold

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