A decrease in consumption growth will cause the LRAS curve to:
A) shift inward.
B) shift outward.
C) remain unchanged.
D) first shift outward and then shift inward.

Question

Quizplus · Accepted Answer

The Long-Run Aggregate Supply (LRAS) curve represents the total output of an economy at full employment and is not affected by changes in the level of consumption. It is determined by factors such as technology, capital, and labor, rather than short-term fluctuations in demand.

A Decrease in Consumption Growth Will Cause the LRAS Curve