Which of the following shifts the aggregate supply curve?

Question

Quizplus · Accepted Answer

- An increase in the price of oil increases production costs for firms, causing a leftward shift in the aggregate supply curve.
- A change in the previous period's inflation rate affects firms' expectations about future inflation and may cause a shift in the short-run aggregate supply curve.
- Higher taxes on firms decrease their after-tax profits, which reduces investment and causes a leftward shift in aggregate supply.

Which of the Following Shifts the Aggregate Supply Curve