A Leftward Shift in the LRAS Curve

question 87

Multiple Choice

A leftward shift in the LRAS curve

• A) cannot occur.
• B) may be caused by destruction of the capital stock by war or by natural disasters (e.g. ,earthquakes)only.
• C) may be caused by natural disasters (e.g. ,earthquakes)or by depletion of natural resources only.
• D) may be caused by depletion of natural resources or by destruction of the capital stock by war only.
• E) may be caused by destruction of the capital stock by war,by natural disasters (e.g ,earthquakes) or by depletion of natural resources.

---

Definitions:

Industrial Policy

Government strategies aimed at improving the competitive position and capabilities of domestic industries and firms.

Taxes, Subsidies, and Regulations

These are tools used by governments to influence economic activity. Taxes are levies on income or purchases, subsidies provide financial support, and regulations set rules for how businesses can operate.

Specific Industries

Specific Industries are distinct sectors of the economy that produce or handle similar types of goods and services, such as the automotive or technology industries.

Displaced Workers

Individuals who have been laid off from their jobs because their positions have been eliminated, usually due to economic changes, technological advancements, or business restructuring.