Multiple choice question.
have no effect on the per-unit production cost of the production
decrease the per-unit production costs and shift the aggregate supply curve to the right
decrease the per-unit production costs and shift the aggregate supply curve to the left
increase the per-unit production costs and shift the aggregate supply curve to the right
1 answer
The correct answer is:
decrease the per-unit production costs and shift the aggregate supply curve to the right.
Subsidies can lower production costs for producers of alternative energy, making it cheaper to produce, which can lead to an increase in supply (shift of the aggregate supply curve to the right).
