During the winter of 2015, incredible snowfall in the Maritimes and Ontario brought down power lines and closed whole cities.The result of this extreme weather was
A)a shift of the short-run aggregate supply curve to the left.
B)a shift of the short-run aggregate supply curve to the right.
C)movement of the economy up along a stationary short-run aggregate supply curve.
D)movement of the economy down along a stationary short-run aggregate supply curve.
E)the short-run aggregate supply curve became steeper.

Question

Quizplus · Accepted Answer

The extreme weather caused by the snowfall brought down power lines and closed whole cities, which led to a decrease in productivity and increased costs of production. As a result, the short-run aggregate supply curve shifted to the left due to a decrease in the availability of goods and services, which caused inflationary pressure in the economy.

During the Winter of 2015, Incredible Snowfall in the Maritimes