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the production function will determine aggregate supply in the long run. That it , the vertical position of the LRAS and the level of full employment income(Y-bar) represents the maximum possible of output level with full employment of all factor resources operating with, and using, the level of technology available. Now you want to "improve" the aggregate production function to increase the supply capacity of the economy. That it, you desire to move the vertical LRAS to the right on the AS/AD diagram.
LIST four initiatives that you would focus upon to get the job done.Hint: a GOOD ANSWER will identify the component elements of the production function we have discussed, and ADDRESS POLICIES that would "positively" impact the elements. Or, you can list any good initiative that would stimulate GROWTH in the marc-economy.
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