11.4 real GDP to increase in the short run?

11.4 real GDP to increase in the short run?

real GDP to increase in the short run?
reason 1: a rise in AD. This can happen when exports rise, as one of the reasons.
Reason 2: A rise in AD. This can again be due to decline in imports. This is possible due to a change in consumer prefrences.
b. What are two factors that can cause the nation’s
real GDP to increase in the long run?
this requires a right shift of LRAS curve, which is possible with
a discovery of new mineral deposits- this will add to natutal resources of the nation which cancontribute to long run supply
a rise in productivity levels due to prior investments in education and vocational training.
the productivity isa measure of anation’s resources. Any increase translates into higher long run AS.

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