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The long-run aggregate supply curve shifts left if________.

a. the capital stock increases.
b. there is a natural disaster.
c. the government removes some environmental regulations that limit production methods.
d. None of the above is correct.

User Nat Webb
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1 Answer

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Answer:

b. there is a natural disaster

Step-by-step explanation:

The aggregate supply curve shows the total quantity of products and services supplied at a given price, over time. Changes in the quantities demanded affects the aggregates supply only in the short-run. In the long-run, only technological changes, capital, and labor impacts the aggregate supply curve.

The aggregate supply curve shifts to the left if the production decreases. It will shift to the right when production rises. A natural disaster can significantly reduces production in the economy. A disaster can destroy a country's manufacturing infrastructure, including factories, power distribution, transport networks, and material sources. The effects will reduce the overall production and supply of goods and services for a long period.

User Imaginary
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