How does increased investment spending typically affect long-run aggregate supply (LRAS)?

Increased investment spending usually helps the economy grow in the long run by boosting the long-run aggregate supply (LRAS). When businesses invest more money in things like new equipment, technology, or buildings, they can produce more goods and services efficiently. This means that the economy can expand its capacity to produce, leading to more jobs and higher overall output. For example, if a factory invests in new machinery, it can make more products in less time, which can lower costs and increase profits. Therefore, more investment spending helps shift the LRAS curve to the right, showing that the economy can sustain a higher level of production over time.