Which of the following changes does NOT shift the long-run aggregate supply curve? A) a tax hike that reduces the capital stock B) a fall in the price level C) a rise in number of college graduates in the labor force D) a decrease in the labor force

Question

Quizplus · Accepted Answer

A fall in the price level causes movement along the long-run aggregate supply curve, but does not shift it. The other options in the question involve changes in factors that affect the long-run aggregate supply curve, such as the capital stock, labor force, and human capital (education).

Which of the Following Changes Does NOT Shift