Question:
The American Trucking Association anticipates a shortage of truck drivers in coming years as the number of retirees exceeds the number of new drivers who enter the profession. The number of train boxcars is also expected to fall by over 40 percent in coming years because federal regulations limit boxcars to 50 years of service and many currently in use will reach that limit by 2020. Lumber and paper producers that depend on boxcars for their shipments fear that they will have to depend more on trucks for transportation, which will cost as much as 20 percent more than shipping by rail. Is the reduction in the number of trucks and boxcars likely to affect the short-run aggregate supply curve? Is it likely to affect the long-run aggregate supply curve? Briefly explain.