The long-run aggregate supply curve shifts outward when A. there are changes in the power of government. B. there is economic g
rowth. C. there is increased demand of real goods and services. D. the real-balance effect takes hold.
1 answer:
Answer:
B. there is economic growth.
Explanation:
The long-run aggregate supply curve is a a vertical curve that illustrate the way that the aggregate demand in an economy affects the total output of that economy, but only temporarily. Therefore the long-run aggregate supply curve shifts outward when there is economic growth within the economy in question. This can be seen from the graph below.
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