In which situation would the long-run aggregate-supply curve shift left?
A) if the number of immigrants increases
B) if there is substantial flooding
C) if the government removes some environmental regulations that limit production methods
D) if trade barriers are removed

Question

Quizplus · Accepted Answer

Substantial flooding can damage infrastructure and disrupt production, leading to a decrease in potential output and a leftward shift in the long-run aggregate supply curve. Increases in immigration (A) would increase the labor force and potentially shift the curve rightward, removing environmental regulations (C) could lead to increased production and a rightward shift, and removing trade barriers (D) could increase international trade and potentially shift the curve rightward.

In Which Situation Would the Long-Run Aggregate-Supply Curve Shift Left