An increase in tariffs on imported goods will shift the aggregate supply curve to the left and cause the level of output to decrease.

Name: An increase in tariffs on imported goods will shift the aggregate supply curve to the left and cause the level of output to decrease.
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Question

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An increase in tariffs will increase the cost of imported goods for producers, causing them to reduce their output. This will shift the aggregate supply curve to the left, resulting in a decrease in the level of output.

An Increase in Tariffs on Imported Goods Will Shift the Aggregate