Which of the following would shift the long-run aggregate supply curve to the left?
A) an increase in the average workweek
B) an improvement in technology
C) a civil war
D) an acceleration of depreciation allowances to encourage capital formation

Question

Which of the following would shift the long-run aggregate supply curve to the left?  
A) an increase in the average workweek 
B) an improvement in technology 
C) a civil war 
D) an acceleration of depreciation allowances to encourage capital formation

Quizplus · Accepted Answer

A civil war can disrupt production, damage infrastructure, and cause uncertainty in the economy, all of which can decrease long-run aggregate supply. Choices A and D are likely to shift the short-run aggregate supply curve, while choice B would shift the long-run aggregate supply curve to the right.

Which of the Following Would Shift the Long-Run Aggregate Supply