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Dynamic AD-AS Model: Introduction
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Dynamic AD-AS Model: Introduction
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23. Dynamic AD/AS Model / Dynamic AD-AS Model: Introduction / Problem 9
Problem 9
If a country invests heavily in education and infrastructure, what is the likely effect on the long-run aggregate supply curve in the dynamic AD-AS model?
A
The long-run aggregate supply curve shifts to the left.
B
The long-run aggregate supply curve remains unchanged.
C
The long-run aggregate supply curve shifts to the right.
D
The long-run aggregate supply curve becomes vertical.
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