To an economist, a decrease in supply means a: a. rightward ...

[madam-professor]

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]

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.

[madam-professor]

Thanks for the timely response, appreciate it

[elyse44]

Gracias!