True. Changes in taxes, subsidies, and the extent of regulations can alter per-unit production costs for businesses, which can lead to shifts in the aggregate supply curve. An increase in production costs typically shifts the aggregate supply curve to the left, while a decrease in production costs shifts it to the right.
True or false: Changes in taxes, subsidies, and the extent of regulations may alter per-unit production costs and shift the aggregate supply curve.
True false question.
True
False
1 answer