Which of these is most likely to shift the long-run aggregate supply curve to the left?
A)An increase in the average workweek
B)An improvement in technology
C)A civil war
D)A decrease in aggregate demand
E)A decline in global oil prices

Question

Quizplus · Accepted Answer

A civil war can disrupt the economy, leading to a decline in infrastructure and a decrease in the availability of resources necessary for production. This can lead to a decrease in the productive capacity of the economy in the long run, causing the long-run aggregate supply curve to shift to the left. The other choices are less likely to shift the long-run aggregate supply curve to the left.

Which of These Is Most Likely to Shift the Long-Run