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) production bottlenecks occurring when producers near full plant capacity
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 per unit, causing firms to produce less at every price level, thereby, shifting the aggregate supply curve to the left.

Which One of the Following Would Increase Per-Unit Production Cost