Rising oil prices in the U.S. during the 1970s caused the economy's
A) aggregate supply curve to shift to the right
B) aggregate supply curve to shift to the left
C) aggregate demand curve to become vertical
D) aggregate demand curve to become horizontal

Question

Quizplus · Accepted Answer

Rising oil prices in the 1970s increased production costs for many businesses, which reduced the quantity of goods and services that could be produced at any given price level. This is represented by a leftward shift in the aggregate supply curve.

Rising Oil Prices in the U