Which of the following shifts the aggregate supply curve to the left?
A)An improvement in computer technology
B)A war that forces people to ration their food and their use of energy
C)An increase in real wage rates
D)Discovery of a new oil field
E)Lower oil prices in the world market

Question

Quizplus · Accepted Answer

An increase in real wage rates will increase the cost of production for firms, as they have to pay more to their workers. This will lead to a decrease in supply, shifting the aggregate supply curve to the left.

Answer: B 
 A war that forces people to ration their food and energy will lead to a decrease in production and supply because of the limited resources. This will shift the aggregate supply curve to the left.

Answer: E 
 Lower oil prices in the world market will decrease the cost of production for firms, leading to an increase in supply. This will shift the aggregate supply curve to the right.

Answers A and D do not affect the aggregate supply curve, so they are not the correct choices for this question.

Which of the Following Shifts the Aggregate Supply Curve to the Left