Question:

LRAS Curves??

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Please tell me if this is true, false or ambiguous and why? please give me reasons for your answer.this is where i will be giving top answers...thnx

If the government invests in a new high speed broadband network, both the AD curve and

the LRAS curve are likely to shift to the left.

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  1. false, they will both shift to the right.

    AD: shift to the right.  the government is spending money, which increases gdp, and increases in gdp shift the ad curve

    LRAS: shift to the right.  it's an investment which will increase productivity, which will increase the amount the economy is capable of supplying

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