PRC-3 · Chapter 13 · Question 46 of 50
A massive national strike drastically reduces the supply of fuel and spikes energy prices across the country. In macroeconomics, what immediate shift does this cause?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A decrease (leftward shift) in the Short-Run Aggregate Supply curve
Explanation
Spiking energy prices massively increase production costs for all industries, creating a negative supply shock that shifts the SRAS curve to the left.
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