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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.7
What is the impact of supply-side economic policies on the productive capacity and long-run aggregate supply (LRAS)?
They decrease the productive capacity and shift the LRAS to the left
They primarily affect short-run aggregate supply (SRAS)
They have no impact on the productive capacity and LRAS
They increase the productive capacity and shift the LRAS to the right
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AP Macroeconomics - 5.7 Public Policy and Economic Growth
Key terms
Long-Run Aggregate Supply (LRAS)
Productive capacity
Supply-side economic policies
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
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Practice Quizzes
Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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