When there is a temporary sharp reduction in the price of oil,which curves will shift left?
A)neither SRAS nor LRAS
B)SRAS
C)LRAS
D)both SRAS and LRAS

Question

Quizplus · Accepted Answer

A temporary sharp reduction in the price of oil would not cause either the Short-Run Aggregate Supply (SRAS) or the Long-Run Aggregate Supply (LRAS) curves to shift left. Instead, it would likely cause the SRAS to shift right due to lower production costs.

When There Is a Temporary Sharp Reduction in the Price