An increase in the long-run aggregate supply curve reflects economic growth.

Question

Quizplus · Accepted Answer

An increase in the long-run aggregate supply curve indicates that there has been an increase in the potential output capacity of the economy, which is typically a result of economic growth. As such, an increase in long-run aggregate supply signifies that the economy can now produce more goods and services without pushing up prices, which is indicative of a more productive and prosperous economy.

An Increase in the Long-Run Aggregate Supply Curve Reflects Economic