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When There Is Economic Growth with Rising Living Standards

Question 36

Multiple Choice

When there is economic growth with rising living standards,


A) business investment increases both LAS and SAS.
B) business investment increases the quantity and quality of inputs.
C) increased employment in new factories increases income, so AD increases.
D) potential GDP is greater in the new long-run macroeconomic equilibrium.
E) all of the above are true.

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