A temporary embargo on oil from the Middle East going in to the United States would
A)shift both the short-run and long-run aggregate supply curves to the left.
B)shift only the long-run aggregate supply curve to the left.
C)shift the long-run aggregate supply curve to the right.
D)shift only the short-run aggregate supply curve to the left.

Question

Quizplus · Accepted Answer

A temporary embargo would cause a short-term disruption in oil supply, affecting production costs and shifting the short-run aggregate supply curve to the left. The long-run aggregate supply curve remains unchanged as the economy adjusts over time.

A Temporary Embargo on Oil from the Middle East Going