Which one of the following would increase per unit production cost and therefore shift the aggregate supply curve to the left?
A)a reduction in business taxes
B)an increase in the number of resources used in production
C)an increase in the price of imported resources
D)deregulation of industry

Question

Quizplus · Accepted Answer

An increase in the price of imported resources will increase the cost of production for firms, leading to a higher per unit production cost. As a result, the aggregate supply curve will shift to the left. The other options listed would not lead to a higher per unit production cost and therefore would not shift the aggregate supply curve to the left.

Which One of the Following Would Increase Per Unit Production