Which of the following shifts the short-run aggregate supply right?
A) an increase in the money supply
B) an increase in the minimum wage
C) a decrease in the price of oil
D) a decrease in immigration from abroad

Question

Quizplus · Accepted Answer

A decrease in the price of oil would decrease the cost of production for firms, which would increase their profits and therefore shift the short-run aggregate supply curve to the right. Options A, B, and D would not shift the short-run aggregate supply curve to the right.

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