Which of the following shifts the long-run aggregate supply curve to the left?
A)either an increase in the price of imported natural resources or a reduction in trade restrictions.
B)neither an increase in the price of imported natural resources or a reduction in trade restrictions.
C)an increase in the price of imported natural resources and an increase in trade restrictions.
D)an increase in trade restrictions and a decrease in the price of imported natural resources.

Question

Quizplus · Accepted Answer

An increase in the price of imported natural resources and an increase in trade restrictions would increase production costs for domestic firms, shifting the long-run aggregate supply curve to the left. Options A and D are partially correct but do not fully shift the long-run aggregate supply curve to the left. Option B does not affect the aggregate supply curve at all.

Which of the Following Shifts the Long-Run Aggregate Supply Curve