Which of the following will most likely cause a decrease in short-run aggregate supply in the goods and services market?
A)an increase in the productivity of labor
B)a reduction in the price of crude oil,a major imported commodity
C)an increase in resource prices
D)favorable weather conditions in agricultural areas

Question

Quizplus · Accepted Answer

An increase in resource prices would increase the cost of production for firms, leading to a decrease in short-run aggregate supply. Options A, B, and D would all increase short-run aggregate supply by reducing costs of production, which would shift the supply curve to the right.

Which of the Following Will Most Likely Cause a Decrease