The aggregate supply curve would shift downward if
A) unit costs increase due to an increase in output
B) the wage rate increases
C) good weather increases crop yields
D) an increase in real GDP causes the price level to decrease
E) an oil embargo causes world oil prices to rise

Question

Quizplus · Accepted Answer

Good weather increasing crop yields would lead to an increase in the supply of goods and services, causing the aggregate supply curve to shift downward.

The Aggregate Supply Curve Would Shift Downward If