Question

A candidate for political office announces the following policies which, he says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2 make trade more open between the US and other countries.

A) 1 and 2 both shift long-run aggregate supply left
B) 1 shifts long-run aggregate supply left, 2 shifts long-run aggregate supply right
C) 1 and 2 both shift long-run aggregate supply right.
D) 1 shifts long-run aggregate supply right, 2 shifts long-run aggregate supply left.

Answer 1

C. 1 and 2 both shift long-run aggregate supply right.

Step-by-step explanation:

Based on the scenario been described in the question, which we saw a candidate running for political office, he announce two (2) policies 1. increase immigration from abroad an 2 make trade more open between the US and other countries this policies he intend to implement when he assumes office, he claims that the policies will lead to higher output in the long run. For that two policies will shift long - run aggregated supply to the right , which option c is the correct answer.