During the Iraq war, the Iraqis' infrastructure and capital were destroyed. This means that

Question

Quizplus · Accepted Answer

The destruction of the Iraqis' infrastructure and capital during the Iraq war would lead to a decrease in their long-run aggregate supply, as they would have less productive resources available to produce goods and services. This could also lead to a decrease in their aggregate demand due to the reduced capacity for consumption and investment. However, the question specifically asks about the long-run aggregate supply, so we can eliminate choices C and D. Choice A would be incorrect, as a rightward shift in the long-run aggregate supply curve would indicate an increase in the economy's potential output due to factors such as technological advancements or an increase in the quantity or quality of productive resources, which is not the case here.

During the Iraq War, the Iraqis' Infrastructure and Capital Were