Long-run economic growth is generally positive rather than
negative because long-run changes in output are driven by changes
in the:
LRAS, including changes in
consumption, investment and net exports.
LRAS, including changes in labour,
capital, and technology.
aggregate demand, including changes
in labour, capital, and technology.
SRAS, including changes in labour,
capital, and technology.
When consumer confidence falls, in the short run:
aggregate supply will
shift to the left, reducing equilibrium GDP and price level; but in
the long run,...