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Which of the following would be most likely to cause the short-run aggregate supply curve to shift left? A reduction in oil prices due to increased drilling. A rise in government spending. A decrease in
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Which of the following would be most likely to cause the short-run aggregate supply curve to shift left?

A reduction in oil prices due to increased drilling.

A rise in government spending.

A decrease in investor confidence.

A spike in food prices due to a drought.

User Zrr
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Answer: A spike in food prices due to a drought

Reduction in oil prices reduces aggregate production cost and consequently shift the aggregate supply curve to the right

A rising government spending shifts aggregate demand but does not affect aggregate supply

Investor confidence may raise investment and shipped aggregate demand however it will not shift aggregate supply
User Jeff Schmitz
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