Which of the Following Supply Shocks Would Shift the Long-Run

question 183

Multiple Choice

Which of the following supply shocks would shift the long-run aggregate supply curve outward?

• A)an increase in business taxes
• B)an increase in gasoline taxes
• C)an increase in the cost of raw materials
• D)an increase in the amount and cost of government regulation
• E)an increase in agricultural output

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Definitions:

1970s

The decade from 1970 to 1979, characterized by significant cultural, political, and technological changes around the world, including the end of the Vietnam War, the Watergate scandal, and the rise of environmental movements.

Energy Crisis

A period characterized by a shortage of energy resources, leading to increased energy prices and potentially affecting economic and social development.

Federal Government

The national government of a federal country, such as the United States, which has specific powers delegated to it by the constitution.

Environmental Movement

A social and political effort to protect natural resources and ecosystems from degradation due to human activity, gaining significant traction in the late 20th century.