Figure 13-4
-Refer to Figure 13-4.In the figure above,AD1,LRAS1 and SRAS1 denote AD,LRAS and SRAS in year 1,while AD2,LRAS2 and SRAS2 denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?
A)2.5%
B)7.3%
C)8.0%
D)10.0%

Question

Figure 13-4 
-Refer to Figure 13-4.In the figure above,AD1,LRAS1 and SRAS1 denote AD,LRAS and SRAS in year 1,while AD2,LRAS2 and SRAS2 denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?
A)2.5% 
B)7.3% 
C)8.0% 
D)10.0%

Quizplus · Accepted Answer

The actual growth rate in GDP in year 2 is determined by the shift from AD1 to AD2 and the corresponding movement along the SRAS curve from point A. The given options suggest that the correct growth rate is 7.3%.

Figure 13-4 -Refer to Figure 13-4.In the Figure Above,AD1,LRAS1 and SRAS1 Denote