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In which situation would the long-run aggregate-supply curve shift right?

a. if the government were to increase the minimum-wage
b. if the government were to make unemployment benefits more generous
c. if the government were to raise taxes on investment spending
d. if the government were to increase immigration

User Farlop
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Final answer:

Increasing immigration is the situation that would likely cause the long-run aggregate-supply curve to shift to the right, as it expands the labor force and increases productivity caps.

Step-by-step explanation:

The situation in which the long-run aggregate-supply curve would shift right is if the government were to increase immigration. This policy impacts the labor force and potentially increases the total productivity capacity of an economy. Government policies that lead to an increase in the supply of labor, such as easing immigration restrictions, can be expected to increase the long-run aggregate supply (LRAS) by providing more workers, which, in turn, could lead to greater output and an outward shift of the LRAS curve. For example, government subsidies for nursing schools or nursing students would shift the supply curve of nurses to the right. On the other hand, policies like increasing the minimum wage, making unemployment benefits more generous, or raising taxes on investment spending might not lead to a rightward shift of the LRAS curve as they could decrease the incentive to work or invest.

User NDBoost
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