Which of the following events is least likely to cause a decrease in short-run aggregate supply? A)A labor stoppage causes the price of steel to rise. B)Oil exporting countries reduce their production levels. C)Inflation increases from 4% to 7%.
Changes in the price level represent movement along the short-run aggregate supply curve. The other items listed are events that are likely to shift the short-run aggregate supply curve to the left (decrease SRAS).
