If Congress passed new laws significantly increasing the regulation of business, this action would tend to:
A) Increase per-unit production costs and shift the aggregate supply curve to the left
B) Increase per-unit production costs and shift the aggregate supply curve to the right
C) Increase per-unit production costs and shift the aggregate demand curve to the left
D) Decrease per-unit production costs and shift the aggregate supply curve to the left

Question

Quizplus · Accepted Answer

Increasing regulations on businesses often require additional resources and expenses to meet compliance standards, which can increase per-unit production costs. This would shift the aggregate supply curve to the left as firms would supply less goods and services at every price level to maintain their profitability.

If Congress Passed New Laws Significantly Increasing the Regulation of Business