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Macroeconomics

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Economic Growth: Graphed

MACRO-DJFIO4

Which of the following best describes economic growth?

A

A rightward shift of the Long-run Aggregate supply curve and a movement from inside the production possibilities frontier to the frontier, itself.

B

A reduction in cyclical unemployment as the economy reaches the Long-run Aggregate supply curve and an outward shift of the production possibilities frontier.

C

A movement onto the production possibilities frontier with an increase in real output that reduces cyclical unemployment.

D

A rightward shift of the Long-run Aggregate supply curve and an outward shift of the production possibilities frontier.