If the amount of regulation in an economy increases, the aggregate supply curve shifts _____ and output supplied will _____.
A) left; increase
B) left; decrease
C) right; increase
D) right; decrease

Question

Quizplus · Accepted Answer

When the amount of regulation in an economy increases, it typically leads to an increase in production costs for firms. This causes the aggregate supply curve to shift leftward, meaning a decrease in output supplied.

If the Amount of Regulation in an Economy Increases, the Aggregate