In the longrun Aggregate Supply 1 2 3 4 never changes If an

In the long-run Aggregate Supply

1)

2)

3)

4)

never changes.

If an economy is growing at 4.5% per year, it will take __ years for standard of living in the economy to double.

Question 26 options:

1)

2)

3)

4)

Solution

a) In the long run, Aggregate Supply is the potential GDP. The answer is \"B\".

b) 15.56 years. At the growth rate of 4.5%, the standard of living in the nation will double at 15.56 years. The answer is \"A\".