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What Effect Will the Combination of a Decrease in the Capital

Question 45

Multiple Choice

What effect will the combination of a decrease in the capital stock and increasingly costly government regulations have on LRAS?


A) It will shift LRAS to the left.
B) It will shift LRAS to the right.
C) It will leave LRAS unchanged.
D) It will have an indeterminate effect on LRAS.

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