If the government permanently eliminated many of the costly paperwork requirements imposed on businesses and individuals,how would this impact the SRAS and LRAS curves?
A)SRAS would increase but LRAS would not.
B)SRAS and LRAS would both increase.
C)SRAS and LRAS would both decrease.
D)SRAS would decrease but LRAS would not.

Question

Quizplus · Accepted Answer

Reducing paperwork requirements lowers production costs and increases efficiency, leading to an increase in both short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS).

If the Government Permanently Eliminated Many of the Costly Paperwork