Final answer:
Higher prices for an important natural resource can lead to a leftward shift of the short-run aggregate supply curve, resulting in reduced GDP, higher unemployment, and an inflationary higher price level. This pattern is known as stagflation.
Step-by-step explanation:
Higher prices for inputs that are widely used across the entire economy can have a macroeconomic impact on aggregate supply. Increases in the price of such inputs will cause the SRAS curve to shift to the left, discouraging production because it reduces the possibilities for earning profits. For example, when the price of an important natural resource increases, it can lead to a leftward shift of the short-run aggregate supply curve, resulting in reduced GDP, higher unemployment, and an inflationary higher price level. This pattern is known as stagflation.