Which of the Following Would Cause a Decrease (Leftward Shift)

question 3

Multiple Choice

Which of the following would cause a decrease (leftward shift) in the short-run aggregate supply curve (SRAS) ?

• A) An increase in oil prices.
• B) An advance in technology.
• C) An increase in the CPI.
• D) An increase in the long-run aggregate supply curve (LRAS).

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.

Equilibrium Price

A price point where the supply of goods meets the demand for those goods in the market.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a specific price over a certain period of time.

Usury Laws

Regulations governing the maximum interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.