Long-run economic growth can be achieved with
A)A rightward shift in the long-run aggregate supply curve.
B)Contractionary fiscal policy.
C)Neutral monetary policy.
D)A rightward shift in the aggregate demand curve.

Question

Quizplus · Accepted Answer

Long-run economic growth can be achieved with a rightward shift in the long-run aggregate supply curve, which indicates an increase in the economy's productive capacity. This shift can come from advancements in technology, improvements in infrastructure, or increased investment in human capital. Contractionary fiscal policy and neutral monetary policy are aimed at stabilizing the economy in the short run, rather than promoting long-run growth. A rightward shift in the aggregate demand curve can lead to short-term economic growth but may result in inflationary pressures and cannot sustain long-run growth without a corresponding increase in productive capacity.

Long-Run Economic Growth Can Be Achieved with