Which of the following would cause the short-run aggregate supply curve to shift leftward?
A) a drop in energy prices
B) workers opting for more leisure time and less time on the job
C) new investment spending that is greater than depreciation of the capital stock
D) a technological breakthrough, with widespread practical applications, that occurs in the microcomputer industry

Question

Which of the following would cause the short-run aggregate supply curve to shift leftward?  
A) a drop in energy prices 
B) workers opting for more leisure time and less time on the job 
C) new investment spending that is greater than depreciation of the capital stock 
D) a technological breakthrough, with widespread practical applications, that occurs in the microcomputer industry

Quizplus · Accepted Answer

Workers opting for more leisure time and less time on the job would lead to a decrease in the labor supply, which would shift the short-run aggregate supply curve to the left.

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