Which of the following is an example of a shock that shifts the long-run aggregate supply curve to the right?

Question

Quizplus · Accepted Answer

A decrease in government regulation would lead to a decrease in production costs and an increase in efficiency, which would shift the long-run aggregate supply curve to the right. The other options would either have no effect on the long-run aggregate supply curve or would shift it to the left (bad weather and sudden increase in oil prices). An increase in government spending would shift the short-run aggregate supply curve, but not the long-run aggregate supply curve.

Which of the Following Is an Example of a Shock