All else being equal,an increase in ________ would shift the long-run aggregate supply curve to the left.
A) the cyclical unemployment rate
B) the inflation rate
C) economic growth
D) government spending
E) the rate at which capital depreciates

Question

Quizplus · Accepted Answer

An increase in the rate at which capital depreciates would lead to a lower quantity of capital available in the economy, which would shift the long-run aggregate supply curve to the left. With less capital, firms would be less productive, causing a decrease in potential output.

All Else Being Equal,an Increase in ________ Would Shift the Long-Run