Answer Happy

stion 22 of 25 > The graph shows the aggregate demand and Solow growth curves for a given economy. Assume this is a typical economy relying on inputs such as coal and oil. Show the effect of a real shock that results in potential real GDP changing to 6% by adjusting the graph. Inflation rate 12 11 10 9 6 5 3 Solow growth curve 0 aggregate demand 2 4 A Real GDP growth rate 10 12 14 16 Which three factors could have caused this change in potential real GDP? good farming weather coal price decrease oil price increase Answer Bank an improvement in technology a major bird flu pandemic nots and political instability increased consumer confidence increase in exports