All other things being equal, which of the following policy changes is most likely to result in a rightward shift of an economy's long-run aggregate supply (LRASLRASLRAS) curve?
A temporary reduction in import tariffs on raw materials, lowering short-run production costs for manufacturing firms.
An increase in the statutory retirement age that permanently expands the size of the active labour force.
A reduction in the central bank's policy interest rate designed to stimulate household consumption.
An increase in the level of out-of-work benefits to support low-income households during a recession.
222 exam-style questions on AQA A Level Economics 2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts, covering 2.2.1 The circular flow of income, 2.2.2 Aggregate demand and aggregate supply analysis, 2.2.3 The determinants of aggregate demand, 2.2.4 Aggregate demand and the level of economic activity, 2.2.5 Determinants of short-run aggregate supply, and 2.2.6 Determinants of long-run aggregate supply. Each one has a worked solution and a mark scheme showing where the marks go.