Expenditure on alternative energy and the nation's infrastructure _______ short- run aggregate supply and _______ potential GDP.

Question

Quizplus · Accepted Answer

Expenditure on alternative energy and the nation's infrastructure will increase short-run aggregate supply by improving productivity and efficiency in these sectors. This increase in short-run aggregate supply will shift the aggregate supply curve to the right, leading to a potential increase in potential GDP if the economy operates at full employment.

Expenditure on Alternative Energy and the Nation's Infrastructure _______ Short-