Author Question: To an economist, a decrease in supply means a: a. rightward shift of the supply curve. b. movement ... (Read 128 times)

madam-professor · **on:** Jun 30, 2018

To an economist, a decrease in supply means a:
a. rightward shift of the supply curve.
b. movement up along a supply curve.
c. leftward shift of the supply curve.
d. movement down along the supply curve.

Question 2

Greater and more extensive government regulations of safety standards and environmental controls will have what effect on short-run and long-run aggregate supply?

mochi09 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

d

Answer to Question 2

Increased government regulation, limits, or taxes caused the costs of production to increase. This will result in both the short-run and the long-run aggregate supply curves shifting to the left if these efforts are considered to be permanent.