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13- If potential GDP increases, what happens to the aggregate supply? Does the LAB curve shift or is there a movement along the LAB curve?
13- If potential GDP increases, what happens to the aggregate supply? Does the LAB curve shift or is there a movement along the LAB curve? Does the SAS curve shift or is there a movement along the GAS curve?I mm m \"hum-.1 man; When potential GDP changes, aggregate supply changes. An increase in potential GDP increases both longrun aggregate supply and shortrun aggregate supply. The longrun aggregate supply curve shifts rightward from LASI] to LASl, and the short-run aggregate supply curve shilts from SAGE to SASL The two supply curves shift by the same amount only if the fullemployment price level remains constant. Hoursadamant\
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