A recent scientific study has concluded that the spotted owl is an endangered species,and it is protected by the Species at Risk Act.To protect the owl,logging operations throughout parts of southern British Columbia have been curtailed.What effect would this have on short-run aggregate supply in Canada?
A)It would shift right (an increase in short-run aggregate supply).
B)It would shift left (a decrease in short-run aggregate supply).
C)It would shift right (a decrease in short-run aggregate supply).
D)It would shift left (an increase in short-run aggregate supply).

Question

Quizplus · Accepted Answer

The curtailment of logging operations in parts of southern British Columbia would reduce the availability of timber for logging, which is an input in the production of many goods and services. As a result, the cost of production would increase and the short-run aggregate supply would shift left.

A Recent Scientific Study Has Concluded That the Spotted Owl