Government policies that shift aggregate supply to the right include:

Question

Quizplus · Accepted Answer

Immigration preferences based on potential productivity would encourage more skilled and productive workers to enter the workforce, increasing the overall level of productivity and shifting aggregate supply to the right. Increased transfer payments to the unemployed (choice B) would have the opposite effect by decreasing the incentive for individuals to seek employment, while the elimination of training programs (choice C) and reduction in job search assistance (choice D) would both reduce the overall level of skill and productivity in the workforce, shifting aggregate supply to the left.

Government Policies That Shift Aggregate Supply to the Right Include