Which of the following would tend to cause the aggregate supply curve to shift to the left?
A) an increase in AD
B) a decrease in AD
C) a decrease in the price of oil
D) a large increase in the price of oil that occurs in a short period of time
E) a change in interest rates

Question

Quizplus · Accepted Answer

A leftward shift in the aggregate supply curve indicates a decrease in the total supply of goods and services at every price level. A large increase in the price of oil in a short period of time would increase production costs for many businesses, leading to a decrease in aggregate supply.

Which of the Following Would Tend to Cause the Aggregate