High taxes and/or heavy regulation:
A) can cause firms to boost production so they can cover the added costs.
B) raise costs of production so that the aggregate supply curve shifts to the left.
C) are not likely to affect firms' behavior,since they are more concerned about profit than taxes or regulation .
D) are likely to shift aggregate supply to the right.
Correct Answer:
Verified
Q63: The long-run aggregate supply curve is vertical
Q66: The real GDP that firms will produce
Q92: (Figure: Determining SRAS Shifts) Q101: Which of the following statements regarding the Q103: The _ shows the amount of output Q107: The _ is vertical at full employment. Q111: Which of the following would NOT cause Q117: Aggregate supply is: Q170: The short-run aggregate supply curve Q251: A(n) _ in productivity and a(n) _
A)
A) the real GDP that
A) is vertical
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