According to supply-side theory,which of the following will shift the aggregate supply curve to the right?
A)A higher minimum wage.
B)A reduction in spending on education.
C)Higher marginal tax rates.
D)A reduction in discrimination.

Question

Quizplus · Accepted Answer

A reduction in discrimination will increase productivity by allowing workers to fully utilize their skills and abilities, which will shift the aggregate supply curve to the right. Higher minimum wage, reduction in spending on education, and higher marginal tax rates will increase production costs and reduce incentives to work, innovate, and invest, which will shift the aggregate supply curve to the left.

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