CHAPTER 17 Economic Growth: Resources, Technology, Ideas, and Institutions Chapters 8 through 10 developed the aggregate supply-aggregate demand model to study fluctuations in Real GDP around the natural rate. Both the production possibilities curve and the long-run aggregate supply curve were assumed to be fixed. However, experience shows that these curves are not fixed. In the long run, the standard of living depends more on creating economic growth and shifting the production possibilities frontier…
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