A reduction in the amount of land a nation has that is capable of growing crops would cause the _______ aggregate supply curve to shift to the _______.
A) long-run; right
B) long-run; left
C) short-run; right
D) None of these shifts would occur.

Question

Quizplus · Accepted Answer

A reduction in the amount of land capable of growing crops is a long-term factor that would shift the long-run aggregate supply curve to the left. The short-run aggregate supply curve would not be affected by this factor.

A Reduction in the Amount of Land a Nation Has