Which of the following would shift the AS curve downward?
A) A decrease in the price level
B) A decrease in world oil prices.
C) An increase in world oil prices.
D) A natural disaster that raises unit costs for all firms.
E) A loss of technological capability.

Question

Quizplus · Accepted Answer

A decrease in world oil prices would lower the cost of production for firms, leading to a decrease in the price level and a downward shift of the AS curve. Option A would cause a movement along the AS curve, while options C, D, and E would shift the AS curve upward.

Which of the Following Would Shift the AS Curve Downward