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because increase in real GPD its not the same thing as increase in nominal GDP
Could you elaborate on this a bit plz?
Does it have sth to do with the short-run and long-run AS curve? Nonimal GDP is determined by AD and long-run AS (which is vertical). But I believe the question didn’t specify if the AS is long-term or short-term. It simply says an increase in both AS and AD curve. Therefore how do you know if it is talking about which AS curve?
Or is it bcuz long-run AS curve doesn’t change much?