A change in which one of the following factors would shift the aggregate supply curve?
A) personal income taxes
B) consumer spending
C) government regulation
D) proﬁt expectations on investment projects

Question

Quizplus · Accepted Answer

Government regulation can directly affect the costs of production for businesses, leading to a shift in the aggregate supply curve. Changes in regulations can either increase or decrease production costs, thus shifting the curve.

A Change in Which One of the Following Factors Would