FIGURE 23-2 Refer to Figure 23-2.Which of the following events could cause the upward shift of the AS curve?
A)a decrease in the price of raw materials
B)a decrease in the world supply of oil as a result of a major hurricane
C)improved quality of the national education system
D)rapid technological advances in mass production
E)an increase in consumption

Question

FIGURE 23-2 Refer to Figure 23-2.Which of the following events could cause the upward shift of the AS curve?
A)a decrease in the price of raw materials 
B)a decrease in the world supply of oil as a result of a major hurricane 
C)improved quality of the national education system 
D)rapid technological advances in mass production 
E)an increase in consumption

Quizplus · Accepted Answer

A decrease in the world supply of oil as a result of a major hurricane would cause a decrease in the economy's aggregate supply, resulting in an upward shift of the AS curve. This is because the decrease in the supply of oil would cause an increase in production costs, leading to higher prices and lower output.