How Is Economic Growth Shown on a Graph of a Long-Run

question 48

Multiple Choice

How is economic growth shown on a graph of a long-run aggregate supply (LRAS) curve?

• A) Output moves to a higher point on the LRAS curve.
• B) Output moves to a lower point on the LRAS curve.
• C) The LRAS curve shifts up.
• D) The LRAS curve shifts to the right.

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Definitions:

Division's Margin

The profit generated by a specific division within a company after direct costs and expenses attributable to that division are subtracted.

ROI

Return on Investment, a performance measure used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.

Investment Opportunity

A financial investment or venture that has the potential to yield returns.

Manufacturing Cycle Efficiency (MCE)

A performance metric that measures the proportion of production time that is actually spent on value-added activities.