When an economy has a more stable and well-developed financial system,it is reasonable to expect ________ the long-run aggregate supply curve.

Question

Quizplus · Accepted Answer

A more stable and well-developed financial system allows for more efficient allocation of resources, investment, and capital accumulation, which can lead to increases in productivity and potential output in the long run. This results in a rightward shift of the long-run aggregate supply curve.

When an Economy Has a More Stable and Well-Developed Financial