Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico. This subsequently drove up natural gas, gasoline, and heating oil prices. As a result, this should B) shift the short-run aggregate supply curve to the right. D) move the economy down along a stationary short-run aggregate supply curve. C) move the economy up along a stationary short-run aggregate supply curve. A) shift the short-run aggregate supply curve to the left.

The oil and natural gas refining capacity in the Gulf of Mexico was destroyed which means that facilities in the Gulf will be unable to supply natural gas, gasoline and heating oil.

These are all very important commodities in the market and drive a lot of production. With the supply of these commodities decreasing and the subsequent slow down of production in multiple industries as a result, the aggregate supply curve will shift to the left in the short run to reflect the reduction in supply of goods in the economy.