One reason why the aggregate supply curve might shift to the left is that:
A) consumer incomes have increased.
B) per-unit production costs have increased.
C) government spending has increased.
D) businesses have become more optimistic.

Question

Quizplus · Accepted Answer

An increase in per-unit production costs makes it more expensive for firms to produce goods and services, leading to a decrease in aggregate supply, which shifts the supply curve to the left.

One Reason Why the Aggregate Supply Curve Might Shift to the Left