Starmock99
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In macro.. When do we draw the LRAS curve? Like for the the cost push inflation diagram there is a LRAS in the diagram. What does LRAS curve show in this instance?

Help is appreciated XO
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alldayniqqa
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You only draw it when specified really. I mainly draw it to show economic growth but and how AD effects in the long run but thats really it. My teacher says that if the question doesn't specify, use the SRAS.
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Starmock99
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(Original post by alldayniqqa)
You only draw it when specified really. I mainly draw it to show economic growth but and how AD effects in the long run but thats really it. My teacher says that if the question doesn't specify, use the SRAS.
I figured it out. It's to show potential output. So the maximum output you can have if you maximize all the other factors of production!
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