Exam II Topics 810 Use the following graph to answer the nex

Exam II (Topics 8-10) Use the following graph to answer the next question 9 AS AS, AD, Real Domestic Output Other things equal, a shift of the aggregate supply curve from ASo to AS? might be caused by ain) Muiple Choice Type here to search

Solution

Ans:

increase in government regulation.

In this case aggregate supply curve shifts from AS0 to AS1,it means aggregate supply curve shifts to the left.

when government regulation increases such as influencing the prices of inputs through taxes.limiting the quantity of supply, the aggregate supply curve will shift to the left.