Which of the following shifts the aggregate supply curve?
A) an increase in the price of oil
B) a change in the previous period's inflation rate
C) higher taxes on firms
D) All of these answers are correct.
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

A) An increase in the price of oil would shift the aggregate supply curve to the left, decreasing the quantity of output supplied at any given price level.
B) A change in the previous period's inflation rate would shift the aggregate supply curve to the right if the rate is lower than expected or to the left if the rate is higher than expected.
C) Higher taxes on firms would shift the aggregate supply curve to the left, increasing the cost of production and decreasing the quantity of output supplied at any given price level. Therefore, all of these answers are correct.

Which of the Following Shifts the Aggregate Supply Curve