2)Initially, an economy has a maximum real GDP of $5 trillion.

1.)Using the line drawing tool,draw the long-run aggregate supply curve. Label itLRAS1.

2.) Then suppose that increases in labor productivity increase the productive capacity of the economy.Using the line drawingtool,draw the new long-run aggregate supply curve. Label itLRAS2.

220 200- 180- 160- 140- Price Level 120- 100- 80- 60- 40- 4 6 8 10 Real GDP per year ($ trillions)