When Potential GDP Increases,long-Run Aggregate Supply Also Increases

question 174

True/False

When potential GDP increases,long-run aggregate supply also increases.

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Definitions:

Cash Operating Costs

Direct costs associated with the day-to-day operations of a business, paid out in cash, including labor, materials, and overhead.

Automating

Refers to the use of technology to perform tasks with minimal human intervention, typically to improve efficiency and reduce costs.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flow equal to the cost of the investment.

Useful Life

The expected period over which an asset is estimated to be economically usable by one or more users, often influencing depreciation calculations.