Labor is on the horizontal axis and Real GDP is on the vertical axis. There is an
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Labor is on the horizontal axis and Real GDP is on the vertical axis. There is an increase in physical capital. Does this 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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The production function is based on labor L capital K and ...View the full answer
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