Order the following steps to illustrate how investment spending affects long-run aggregate supply (LRAS): A) Increased capital stock leads to enhanced productivity, B) Businesses invest in new equipment and technology, C) The LRAS curve shifts to the right, D) Investment spending plays a critical role in capital formation.

Investment spending is important for the economy because it helps businesses grow and become more efficient. First, businesses invest in new equipment and technology, which enhances their productivity. As businesses become more productive, the overall capital stock of the economy increases. This increase in capital allows the economy to produce more goods and services, leading to a rightward shift in the long-run aggregate supply (LRAS) curve. For example, if a factory invests in advanced machines, it can produce more products at a faster rate, contributing to economic growth.