If Congress passed new laws significantly increasing the regulation of business, this action would tend to:

A.Increase per-unit production costs and shift the aggregate supply curve to the left
B.Increase per-unit production costs and shift the aggregate supply curve to the right
C.Increase per-unit production costs and shift the aggregate demand curve to the left
D.Decrease per-unit production costs and shift the aggregate supply curve to the left

ANSWER:

A.Increase per-unit production costs and shift the aggregate supply curve to the left