According to supply-side theory,which of the following would shift the aggregate supply curve leftward?
A)A higher minimum wage.
B)Government deregulation.
C)Lower marginal tax rates.
D)Elimination of structural bottlenecks.

Question

Quizplus · Accepted Answer

Supply-side theory assumes that government policies and regulations can have an impact on the incentives for firms to produce goods and services. A higher minimum wage would increase firms' costs of production and reduce their willingness to hire workers, leading to a leftward shift in the aggregate supply curve. Government deregulation, lower marginal tax rates, and the elimination of structural bottlenecks would all increase the incentives for firms to produce and invest, leading to a rightward shift in the aggregate supply curve.

According to Supply-Side Theory,which of the Following Would Shift the Aggregate