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
E)the arrival of thousands of refugees

Question

Quizplus · Accepted Answer

An increase in inflation expectations can cause firms to anticipate higher costs in the future, leading them to reduce supply at any given price level, thus shifting the short-run aggregate supply curve to the left.

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