At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Join our platform to connect with experts ready to provide detailed answers to your questions in various areas. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

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.


Sagot :

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