Question

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________which shifts the LRAS curve ____________ resulting in ______________________.

Answer 1

Answer: The answer is as follows:

Step-by-step explanation:

(1) Results in higher labor supply

(2) Rightwards

(3) a higher labor

In this question, production function is defined with Real GDP and labor. Here, x-axis represents the labor and y-axis represents the real GDP. So, if there is a rise in a labor, as a result there will be higher labor supply and it also shifts the long run supply curve to the right which resulting in a higher labor.