asked 131k views
4 votes
The third part of LRAS curve is vertical line what does this mean

asked
User INardex
by
7.9k points

1 Answer

3 votes

The answer is the economy is completely efficient. Increases in potential output or a rightward shift in the LRAS curve are usually due to the following: 1. Increases in quantities of factors of production. For example, an increase in the quantity of physical capital, or land (eg. discovery of oil reserves) - the economy is capable of producing more real GDP.

answered
User Steven Scotten
by
8.7k points

Related questions

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.