Economic Growth Is Represented by a Rightward Shift of the Long-Run

question 41

True/False

Economic growth is represented by a rightward shift of the long-run aggregate supply curve (LRAS).

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Definitions:

Standard of Value

A recognized measure that is used to set the price of goods and services in terms of a currency, facilitating trade and economic comparison.

Fiat Money

Legal tender authorized by governmental entities, which is not underpinned by any material goods.

Fiat Money

Currency without intrinsic value that is established as legal tender by government regulation.

Subprime Mortgage Market

The market for loans to borrowers with lower credit ratings, implying higher risk for lenders and typically resulting in higher interest rates.