Suppose there is a decrease in the availability of an important major resource,such as oil.Which shift would most likely occur?
A) The aggregate supply would shift right.
B) The aggregate supply would shift left.
C) The aggregate demand would shift right.
D) The aggregate demand would shift left.

Question

Quizplus · Accepted Answer

A decrease in the availability of a major resource like oil would cause a decrease in production, resulting in a leftward shift of the aggregate supply curve. This would cause a decrease in real GDP and an increase in the price level, leading to stagflation. There would be no immediate effect on the aggregate demand curve.

Suppose There Is a Decrease in the Availability of an Important