Which of the following would cause the short-run aggregate supply curve to shift to the left?
A)an increase in the price level
B)an increase in inflation expectations
C)a technological advance
D)a decrease in interest rates

Question

Quizplus · Accepted Answer

An increase in inflation expectations can cause the short-run aggregate supply curve to shift to the left because producers might anticipate higher costs in the future, leading them to reduce supply at current price levels.

Which of the Following Would Cause the Short-Run Aggregate Supply