(Answered) which of the following would cause a decrease in long run aggregate supplywhich of the following…

4. When can policy changes cause a permanent drop in LRAS?
Policy changes cause permanent LRAS drops when they reduce incentives for investment, innovation, or labor participation. Examples include heavy, persistent capital taxation, regulatory burdens that block new firms, nationalization of industries, or weakened property rights. These policies lower productivity and capital accumulation, shifting the economy’s potential output downward over the long term.