In which situation would the long-run aggregate-supply curve shift right?
A) if a hurricane destroyed several factories
B) if the corporate tax rates decrease
C) if new oil deposits are discovered
D) if the money supply increases

Question

Quizplus · Accepted Answer

The discovery of new oil deposits would lower the cost of production for firms, leading to an increase in potential output and shifting the long-run aggregate supply curve to the right. The other options would not lead to an increase in potential output and would either increase costs or have no effect.

In Which Situation Would the Long-Run Aggregate-Supply Curve Shift Right