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.

Question

Quizplus · Accepted Answer

Long-run economic growth can be achieved with a rightward shift in the long-run aggregate supply curve, which means an increase in productive capacity and potential output. This can be achieved through policies that promote investment in physical and human capital, technological innovation, and institutional reforms that enhance productivity and competitiveness. Contractionary fiscal policy or neutral monetary policy may be necessary to address short-term macroeconomic imbalances, but they are not sufficient to stimulate sustainable long-run growth.

Long-Run Economic Growth Can Be Achieved with