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    Economics Study Set 8
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    Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
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    A Sharp Increase in Oil Prices Along with a Decline
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A Sharp Increase in Oil Prices Along with a Decline

Question 3

Question 3

Multiple Choice

A sharp increase in oil prices along with a decline in labor productivity decline will likely shift the:


A) short-run aggregate supply curve up (to the left) .
B) short-run aggregate supply curve down (to the right) .
C) aggregate demand curve to the right.
D) aggregate demand curve to the left.

Correct Answer:

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