Which of the following can cause a leftward shift in the aggregate supply curve?
A)A major natural disaster such as hurricane or earthquake.
B)Lower marginal tax rates.
C)A bumper agricultural crop.
D)Trade liberalization.

Question

Quizplus · Accepted Answer

A major natural disaster such as hurricane or earthquake can cause damage to infrastructure, disrupt production, and increase input costs, all of which can lead to a leftward shift in the aggregate supply curve. The other options are likely to cause a rightward shift in the aggregate supply curve.

Which of the Following Can Cause a Leftward Shift in the Aggregate