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In the AS-AD model depicting economic growth, the vertical line that represents potential GDP will gradually...

In the AS-AD model depicting economic growth, the vertical line that represents potential GDP will

gradually shift to the left in the long run.

shift to the right in the long run AD curve.

gradually shift to the right in the long run.

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Answer #1

"C"

In the long run as the time passes the potential GDP will shift to the right, it mainly depends on the technological advancement, growth in the labor force and increase in the capital.

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