Which of the following factors causes the short-run aggregate supply curve to shift rightward?

Show Answers

A reduction in the money supplyA decline in the cost of oilAn increase in government expenditure on defense equipmentNone of the aboveA rise in expected price levels

Explanation

A decrease in oil prices lowers production costs, which encourages firms to supply more at every price level, shifting the short-run aggregate supply curve to the right. Other options either do not directly affect short-run supply or shift the curve in the opposite direction.