In the Early 2000s the European Central Bank Warned That

Multiple Choice

In the early 2000s the European Central Bank warned that higher oil prices were a threat to economic growth. The Bank President called the higher prices "a sizeable adverse shock" to the economy. In terms of the AS/AD framework, this shock would be represented as a shift:

A) up (to the left) of the AS curve.
B) down (to the right) of the AS curve.
C) left of the AD curve.
D) right of the AD curve.