Which curve is easiest to shift with government policy?
A) the short-run aggregate supply curve
B) the long-run aggregate supply curve
C) the aggregate demand curve
D) The short-run and long-run aggregate supply curves are both easy to shift.

Question

Quizplus · Accepted Answer

The aggregate demand curve is the easiest to shift with government policy as it can be manipulated through changes in fiscal and monetary policies such as tax cuts, government spending, and interest rate adjustments. The short-run and long-run aggregate supply curves are more difficult to shift as they depend on factors such as technology, natural resources, and labor force growth, which are not under direct government control.

Which Curve Is Easiest to Shift with Government Policy