The Short Run Aggregate Supply Curve can shift either Left or Right. Which of the following would shift the SRAS curve to the right?
A. Increase in Taxation
B. Increase in Government Subsidy
C. Increase in costs of Labor

Question

The Short Run Aggregate Supply Curve can shift either Left or Right. Which of the following would shift the SRAS curve to the right?
A.  Increase in Taxation
B.  Increase in Government Subsidy
C.  Increase in costs of Labor

anonymous · Answer

B. A subsidy is a benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction.