Ceteris paribus,a natural disaster such as a hurricane that disrupts the supply of oil in a country is likely to cause a:

Question

Quizplus · Accepted Answer

A natural disaster that disrupts the supply of oil in a country would cause a decrease in aggregate supply, as there would be less oil available to produce goods and services. This would lead to a leftward shift of the aggregate supply curve. It would not directly affect aggregate demand, so choices C and D are incorrect. Choice A is also incorrect, as a decrease in aggregate supply would result in higher prices, not lower prices, which is what a rightward shift of the aggregate supply curve implies.

Ceteris Paribus,a Natural Disaster Such as a Hurricane That Disrupts