When would the long-run aggregate supply curve shift right?
A)When immigration increases or the government makes a substantial increase in the minimum wage.
B)When immigration decreases or the government abolishes the minimum wage.
C)When immigration increases or the government abolishes the minimum wage.
D)When immigration decreases or the government makes a substantial increase in the minimum wage.

Question

Quizplus · Accepted Answer

Immigration increases the number of workers available in the economy, which can increase the productive capacity of firms and shift the long-run aggregate supply curve to the right. Abolishing the minimum wage can also increase the number of workers (including those with lower skills) who are able to find employment, which can increase productive capacity and shift the curve to the right.

When Would the Long-Run Aggregate Supply Curve Shift Right