2.3.3 Long-run AS

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Question 3
Easy

The diagram below shows a rightward shift of a country's Long-Run Aggregate Supply curve from LRAS1\text{LRAS}_1LRAS1​ to LRAS2\text{LRAS}_2LRAS2​.

Classical LRAS Shift

Which of the following government policies is most likely to achieve this outward shift?

A reduction in corporate tax rates funded by a corresponding cut in government infrastructure expenditure

State-funded subsidies for private sector capital investment and vocational training programmes

An expansionary monetary policy designed to lower interest rates and boost household consumption

An increase in the statutory national minimum wage to boost low-income household consumption

2.3.3 Long-run AS Questions

  1. A Level
  2. /Economics
  3. /2.3.3 Long-run AS