Which of the following shifts short-run aggregate supply left? group of answer choices
a. an increase in price expectations
b. an increase in the actual price level
c. a decrease in the money supply
d. a decrease in the price of oil

The correct answer is letter "D": a decrease in the price of oil.

Explanation:

Aggregate supply is the total supply of goods and services an economy produces in a given period. It is the amount of goods companies plan to sell at given price levels. Essentially, aggregate supply is the relationship between price levels and the number of goods and services an economy produces. That relationship is directly proportional which means if the price increases so will the number of goods and services produced, moving the aggregate supply curve to the right. In front of any decrease the aggregate supply curve to the left.

Thus, if the price of oil decreases, the number of barrels of oils traded will decrease moving the aggregate left. The money supply is related to aggregate demand.

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