Which of the following shifts the short-run aggregate supply left?
A)an increase in the price level
B)an increase in the expected price level
C)an increase in the capital stock
D)a decrease in taxes

Question

Quizplus · Accepted Answer

An increase in the expected price level would cause firms to increase their costs of production, leading to a decrease in short-run aggregate supply. The other options would shift the short-run aggregate supply to the right.

Which of the Following Shifts the Short-Run Aggregate Supply Left