"market structure and macroeconomic analysis" structure, countries, following, represent

karoliukas

A question form Schweser Qbank:
Which of the following events is least likely to cause a downward shift in shortrun 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%.
The correct answer was C) Inflation increases from 4% to 7%.
Changes in the price level represent movement along the shortrun aggregate supply curve. The other items listed are events that are likely to shift the shortrun aggregate supply curve to the left (decrease SRAS).
I can not understand why choice C i correct?
when the question is asking a downward shift in short run aggregate supply, does not mean a shift to the right (whole the supply curve shifts to the right which means more production with lower price)?

Kiakaha

I think what it is meaning to say is that a shift affects the price level, not the other way around. That is why it is on the Y axis in the graph. But I could be wrong, I always hated macro in undergrad for its use of “concepts” and not equations.

cyber21

The first two are the cause of a shift in SRAS, the third is the effect of it.