Question

ncreased government spending spurs a short-run expansion. Over time, aggregate supply eventually __________, returning the economy to the full-employment level of output. In this new long-run equilibrium, the distribution of _________ in the economy changes.

Answer 1

If increased government spending spurs a short-run expansion. The statement that complete the gap is: Shifts to the left, Output endresources.

What is aggregate supply?

Aggregate supply can be defined as the overall amount of goods and service  that a firm intend to produce and supply at a point in  time or at a particular period of time.

If an increase in government spending lead to short run expansion this means that there will be shift in  aggregate supply of goods and service as aggregate supply will tend to shift to the left.

Therefore the statement that complete the gap is: Shifts to the left, Output endresources.

Learn more about aggregate supply here:brainly.com/question/19802257

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