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With higher profits, the firm has the incentive to increase production.
If REAL profit doesnt change the firm has no incentive to increase output.
LRAS
QY
GDPR
8
We also assume that in the long run the economy will be producing at full employment.
I. R. A. P.
10
4. Change in Productivity
Technology (Computer virus that destroy half the computers) (The advent of a teleportation machine)
12