Which of the following was NOT cited as contributing to unusual uncertainty having an adverse effect on aggregate supply?
A) the possibility that Congress may let the 2001, 2003 tax cuts to expire
B) the Fed's limited use of monetary policy in fighting the recession
C) the severity of the financial crisis
D) concern that the Affordable Care act would increase the cost of hiring workers

Question

Quizplus · Accepted Answer

The limited use of monetary policy by the Fed would have an adverse effect on aggregate demand, not supply. The other options all involve factors that could negatively affect aggregate supply.

Which of the Following Was NOT Cited as Contributing to Unusual