Which of the following shifts the short-run aggregate and the long-run aggregate supply left?
A) a decrease in the price level
B) a decrease in the expected price level
C) a decrease in the working age population
D) a decrease in consumption

Question

Quizplus · Accepted Answer

A shift in the short-run aggregate supply curve and long-run aggregate supply curve to the left indicates a decrease in potential output or a decrease in the economy's ability to produce goods and services over time. A decrease in the working age population would lead to a decrease in the economy's ability to produce goods and services, thus shifting both the short-run and long-run aggregate supply curves to the left.

Which of the Following Shifts the Short-Run Aggregate and the Long-Run