Question: Let labor be the variable shown on the horizontal axis and Real GDP on the vertical axis. Suppose there is a rise in labor. Does

Let labor be the variable shown on the horizontal axis and Real GDP on the vertical axis. Suppose there is a rise in labor. Does the rise lead to a movement along the production function or to a shift in the production function?

Explain your answer. Next, draw the change in the LRAS curve that results from a rise in labor.

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