A large increase in oil prices will cause the aggregate supply curve to shift left.
Correct Answer:
Verified
Q6: The long-run aggregate supply curve is vertical.
Q177: Recall Application 1, "Measuring Price Stickiness in
Q178: For most firms, payments to capital inputs
Q179: The multiplier is always larger than one
Q180: Along the short run supply curve, when
Q181: Wages are classified as custom prices, because
Q183: If the economy is in long run
Q185: If the economy is in long- run
Q186: A higher marginal propensity to consume results
Q187: Prices of inputs tend to be sticky
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents