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.

Question

Quizplus · Accepted Answer

A higher minimum wage would increase the cost of production for firms, leading to a leftward shift of the aggregate supply curve. Government deregulation and lower marginal tax rates, on the other hand, would reduce the cost of production and increase incentives for firms to invest and produce, leading to a rightward shift of the aggregate supply curve.

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