Area Government Physically Shifts Long Run Aggregate Supply Curve to the Right on Paper

WASHINGTON D.C.- After a taxing year of seeing production possibilities stagnate due to a lack of investment in both education and healthcare, our area government decided to physically shift the long run aggregate supply curve to the right on paper. “You know,” a local politician reportedly stated, “since the LRAS curve isn’t going anywhere and the production possibilities frontier has hardly shifted in the past 20 years. Our executive branch made a decision to pick up the LRAS curve and throw it to the other end of the AS/AD model as if it were a football. Touchdown!” According to our sources, economists feel as though this move by the government will bring about a new age of economic prosperity. “Forget about subsidizing education and increasing productivity by ensuring workers in America are healthy,” a leading local economist told our sources, “this move made with just a pencil and a piece of paper will revolutionize our economic system!” At press time government officials were frantically searching for an eraser to fix their problems after discovering that they had gone a little bit too far.

 

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