Which one of the following events would have no effect on the aggregate supply (AS) curve? Group of answer choices:
A. Toyota Inc. builds factories to produce the Prius hybrid auto in Tennessee & Florida.
B. Congress increases earmarks for scholarships for US community colleges.
C. The EPA increases regulations and paperwork requirements for businesses.
D. Unions become more aggressive and negotiate higher wages.
Aggregate supply curve is an upward sloping curve that indicates that as the price of a good or service increases, ( because of rise in demand ), suppliers or sellers increase the supply of the good in the market.
A. Toyota Inc's factories will have positive effect on aggregate supply curve as these factories will increase the supply of cars.
B. Congress's increased earmarks for scholarship for US community colleges will propel more students to pursue higher studies with cutting edge technological research. It might not have an immediate impact on aggregate supply curve.
C. The EPA's increased regulation and paperwork requirements for businesses will make it difficult for businesses to work efficiently and also it may work as a barrier for new firm entries.Thus, it may have negative impact on aggregate supply curve.
D. When Unions become more aggressive and negotiate higher wages it means higher cost for businesses because of increase in cost of wages which makes sellers reduce supply of commodities.
Which one of the following events would have no effect on the aggregate supply (AS) curve?...