If Congress passed new laws significantly increasing the regulation of business, this action would tend to
A)increase per-unit production costs and shift the aggregate supply curve to the left.
B)increase per-unit production costs and shift the aggregate supply curve to the right.
C)increase per-unit production costs and shift the aggregate demand curve to the left.
D)decrease per-unit production costs and shift the aggregate supply curve to the left

Question

Quizplus · Accepted Answer

Increased regulation typically raises production costs, reducing supply and shifting the aggregate supply curve to the left.

If Congress Passed New Laws Significantly Increasing the Regulation of Business