Which of the following would shift the long-run aggregate supply curve to the left?
A) an increase in the size of the labour force
B) a reduction in the quality of the labour force
C) a reduction in the cost of using computers
D) a decrease in the price level

Question

Which of the following would shift the long-run aggregate supply curve to the left?  
A) an increase in the size of the labour force 
B) a reduction in the quality of the labour force 
C) a reduction in the cost of using computers 
D) a decrease in the price level

Quizplus · Accepted Answer

A reduction in the quality of the labour force would lead to a decrease in the productivity of workers and a decrease in the efficiency of producing goods and services, leading to a decrease in potential output, and hence, a leftward shift in the long-run aggregate supply curve. The other options either have no effect on the long-run aggregate supply curve (A and C) or would shift it to the right (D).

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