According to supply-side theory,which of the following would shift the aggregate supply curve leftward?
A)An increase in unemployment and welfare benefits.
B)Lower marginal tax rates.
C)Government deregulation.
D)An increase in the money supply.

Question

Quizplus · Accepted Answer

An increase in unemployment and welfare benefits would make it easier for workers to not work or to work part-time rather than full-time, reducing the supply of goods and services in the economy and shifting the aggregate supply curve leftward.

According to Supply-Side Theory,which of the Following Would Shift the Aggregate