Which of the following will cause output to increase in the long- run?
A) a decrease in the money supply
B) a decrease in government spending
C) an increase in income taxes
D) None of the above will increase output in the long run.

Question

Quizplus · Accepted Answer

None of the options listed will cause output to increase in the long run. Decreasing the money supply or government spending and increasing income taxes may have short-term effects on the economy, but in the long run, output is determined by factors such as productivity, technology, and resources. To increase output in the long run, policies should focus on improving these factors.

Which of the Following Will Cause Output to Increase in the Long-