Which of the following statements is true?
A) Any permanent change in the quantity of any factor of production available can cause a movement along the short-run aggregate supply curve.
B) Any permanent change in the quantity of any factor of production available can cause a movement along the long-run aggregate supply curve.
C) Increases in costly government regulations can cause a leftward shift of both the short-run and long-run aggregate supply curves.
D) Decreases in costly government regulations can shift the short-run aggregate supply curve upward because they increase productivity.
E) Nonlabor input prices do not affect the long-run aggregate supply curve.
Correct Answer:
Verified
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