Regulations imposed on firms by the government Blank______.

Multiple choice question.

decrease per-unit production costs and shift the aggregate supply curve to the right

increase per-unit production costs and shift the aggregate supply curve to the right

increase per-unit production costs and shift the aggregate supply curve to the left

decrease per-unit production costs and shift the aggregate supply curve to the left

1 answer

The correct answer is:

increase per-unit production costs and shift the aggregate supply curve to the left

Regulations typically impose additional costs on firms, which can lead to a decrease in supply at any given price, thus shifting the aggregate supply curve to the left.