Question

The​ long-run aggregate supply curve shifts outward when A. there are changes in the power of government. B. there is economic growth. C. there is increased demand of real goods and services. D. the​ real-balance effect takes hold.

Answer 1

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.