Which of the following would cause the short-run aggregate supply curve to shift to the right?
A) higher energy prices
B) an increase in taxes
C) increases in government regulation
D) retired workers reentering the labor force

Question

Quizplus · Accepted Answer

Retired workers reentering the labor force would lead to an increase in the available labor force, which would increase the production capacity for firms and cause a shift in the short-run aggregate supply curve to the right. Higher energy prices would increase production costs and shift the curve to the left, an increase in taxes would decrease consumption and shift the curve to the left, and increases in government regulation would also increase production costs and shift the curve to the left.

Which of the Following Would Cause the Short-Run Aggregate Supply