Which of the following shifts the aggregate supply curve?
A)a change in u¯
B)an increase in the price of oil
C)the current inflation rate
D)all of the above
E)raising the federal funds rate

Question

Quizplus · Accepted Answer

An increase in the price of oil would increase the cost of production for firms and cause a leftward shift in the aggregate supply curve. Changes in u¯ or the current inflation rate would affect aggregate demand, not supply. Raising the federal funds rate would also affect aggregate demand rather than supply.

Which of the Following Shifts the Aggregate Supply Curve