A candidate for political office announces the following policies which, he says, economics clearly demonstrates will lead to higher output in the long run: 1. reduce immigration from abroad 2. make trade more open between the US and other countries:
A) 1 and 2 both shift long-run aggregate supply right.
B) 1 and 2 both shift long-run aggregate supply left.
C) 1 shifts long-run aggregate supply right, 2 shifts long-run aggregate supply left.
D) 1 shifts long-run aggregate supply left, 2 shifts long-run aggregate supply right.
Correct Answer:
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