Which of the following would cause the short-run aggregate supply curve to shift to the left?
A) lower energy prices
B) a decrease in taxes
C) increases in government regulation
D) retired workers reentering the labor force

Question

Quizplus · Accepted Answer

Increases in government regulation would cause the short-run aggregate supply curve to shift to the left as it would increase the cost of production for firms, decrease their profitability, and reduce their willingness to supply output at any given price level.

Which of the Following Would Cause the Short-Run Aggregate Supply