The OPEC production cuts of 1999-2000 increased energy prices and caused the aggregate supply curve to

Name: The OPEC production cuts of 1999-2000 increased energy prices and caused the aggregate supply curve to
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

OPEC production cuts reduced the supply of oil, which led to an increase in energy prices. This increase in energy prices caused the aggregate supply curve to shift inward, as higher input costs led to higher production costs for firms throughout the economy.

The OPEC Production Cuts of 1999-2000 Increased Energy Prices and Caused