Many Economists Have Argued That Labor Market Regulations in the European

Multiple Choice

Many economists have argued that labor market regulations in the European Union have stifled efficiency and held down potential GDP. If this argument is correct, the removal of these regulations should:

A) shift the short-run aggregate supply curve in to the left.
B) shift the long-run aggregate supply curve out to the right.
C) shift the aggregate demand curve out to the right.
D) not affect the aggregate supply or aggregate demand curves.