A(n) _____ would likely shift the short-run aggregate supply curve to the left.
A) decrease in consumer spending
B) decrease in the price of oil
C) increase in the price of oil
D) increase in consumer spending

Question

Quizplus · Accepted Answer

An increase in the price of oil would increase the cost of production for firms, leading to a decrease in their profits and a decrease in their willingness to produce goods and services. This would result in a decrease in short-run aggregate supply, shifting the curve to the left. All other options would have the opposite effect.

A(n) _____ Would Likely Shift the Short-Run Aggregate Supply Curve