According to supply-side theory,which of the following would cause a leftward shift in the aggregate supply curve?
A)Increasing government regulations.
B)Reducing the minimum wage.
C)Reducing discrimination in employment.
D)Eliminating excessive government regulation.

Question

Quizplus · Accepted Answer

Increasing government regulations would increase the cost of production, making it more expensive for firms to produce goods and services. This would lead to a leftward shift in the aggregate supply curve, indicating a decrease in the output that firms are willing to supply at any given price level.

According to Supply-Side Theory,which of the Following Would Cause a Leftward