Which of the following events shifts the short run aggregate supply curve to the right?
A)A decrease in the money supply.
B)A drop in oil prices.
C)An increase in government spending on military equipment.
D)None of these answers.
E)An increase in price expectations.

Question

Quizplus · Accepted Answer

A drop in oil prices would lead to a decrease in production costs for firms, allowing them to produce more output at any given price level. This would shift the short run aggregate supply curve to the right.

Which of the Following Events Shifts the Short Run Aggregate