How does an increase in government spending (a fiscal policy) affect the long-run aggregate supply in an economy?

An increase in government spending can affect the long-run aggregate supply by boosting overall economic activity. When the government spends more money, it often invests in infrastructure, education, or healthcare, which improves the economy's productivity. For example, if the government builds new roads, it becomes easier for businesses to transport goods, leading to faster production and lower costs. In the long run, this can shift the aggregate supply curve to the right, meaning the economy can produce more goods and services. However, it is important to balance this spending with other factors, like inflation, to ensure sustainable growth.