In which situation would the long-run aggregate-supply curve shift right?
A) if the government were to increase the minimum wage
B) if the government were to increase the number of import tariffs
C) if the government were to raise taxes on investment spending
D) if the government were to increase immigration

Question

Quizplus · Accepted Answer

Increasing immigration would increase the availability of workers, which would increase the economy's potential output and shift the long-run aggregate-supply curve to the right. Increasing the minimum wage would increase production costs and shift the curve to the left. Increasing import tariffs would decrease aggregate demand and shift the curve to the left. Raising taxes on investment spending would decrease investment and shift the curve to the left.

In Which Situation Would the Long-Run Aggregate-Supply Curve Shift Right