Which of the following changes best represents the effect of the oil embargo (a shut-off of oil from certain OPEC countries) of the 1970s on the U.S. economy?

Question

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The oil embargo of the 1970s led to a decrease in the availability of oil, a critical input for production, which increased production costs and reduced the economy's capacity to produce goods and services. This is represented by a leftward shift of the long-run aggregate supply curve, indicating a decrease in potential output at any given price level.

Which of the Following Changes Best Represents the Effect of the Oil