In the mid-1970s the price of oil rose dramatically. What did this event cause?
A) It shifted aggregate supply left.
B) It caused Canadian prices to fall.
C) The aggregate demand increased because of an increase in the demand for gasoline.
D) OPEC to increase oil production

Question

Quizplus · Accepted Answer

An increase in the price of oil would result in an increase in production costs for many firms, leading to a decrease in aggregate supply.

In the Mid-1970s the Price of Oil Rose Dramatically