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According to the Figure of ADAS Curves and Assuming the Country

Question 110

Multiple Choice

According to the figure of ADAS curves and assuming the country begins on AD1 and SRAS1, what will happen in the short and long run if the price of oil rises significantly? According to the figure of ADAS curves and assuming the country begins on AD<sub>1</sub> and SRAS<sub>1</sub>, what will happen in the short and long run if the price of oil rises significantly? A) The economy will move from point C to E to B. B) The economy will move from point D to C to B. C) The economy will move from point C to A to B. D) The economy will move from point D to C to E.


A) The economy will move from point C to E to B.
B) The economy will move from point D to C to B.
C) The economy will move from point C to A to B.
D) The economy will move from point D to C to E.

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