An increase in the price of oil will cause the aggregate supply curve to shift to the left.

Name: An increase in the price of oil will cause the aggregate supply curve to shift to the left.
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Question

Quizplus · Accepted Answer

An increase in the price of oil typically raises production costs for many companies, leading to a decrease in the total output that businesses are willing to supply at any given price level, thus shifting the aggregate supply curve to the left.

An Increase in the Price of Oil Will Cause the Aggregate