Which of the following will shift the aggregate supply curve up to the left?
A) an increase in the price level
B) a decrease in the level of output
C) an increase in the expected price level
D) a decrease in the price level

Question

Quizplus · Accepted Answer

An increase in the expected price level can shift the aggregate supply curve up to the left because it increases the costs of production, anticipating higher prices for inputs, which reduces the quantity of goods and services supplied at every price level.

Which of the Following Will Shift the Aggregate Supply Curve