A reduction in tariffs and quotas on imported goods shifts the
A)AD curve to the left.
B)AS curve to the left.
C)AS curve to the right.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

A reduction in tariffs and quotas on imported goods increases the supply of goods in the domestic market, thereby shifting the AS curve to the right. This results in lower prices and higher output, which can stimulate economic growth.

A Reduction in Tariffs and Quotas on Imported Goods Shifts