Which of the following changes does NOT shift the long- run aggregate supply curve?
A) a tax hike that reduces the capital stock
B) a rise in number of college graduates in the labor force
C) a fall in the price level
D) a decrease in the labor force

Question

Quizplus · Accepted Answer

Changes in the price level only affect the short-run aggregate supply curve, not the long-run aggregate supply curve. A tax hike that reduces the capital stock (A), a rise in the number of college graduates in the labor force (B), and a decrease in the labor force (D) are all factors that can shift the long-run aggregate supply curve.

Which of the Following Changes Does NOT Shift the Long-