A leftward shift in the short run aggregate supply curve
A) is the result of the Fed increasing the quantity of money.
B) is the result of a rise in the price of a key resource.
C) is the result of consumer expenditures exceeding available output.
D) increases both the price level and real GDP.

Question

Quizplus · Accepted Answer

A leftward shift in the short run aggregate supply curve can occur due to a rise in the price of a key resource, such as oil. This makes production more expensive for businesses, which reduces the quantity of goods and services they are willing to supply at any given price level.

A Leftward Shift in the Short Run Aggregate Supply Curve