Multiple Choice
Firms' manufacturing costs increase substantially due to higher electricity tariffs. How will this affect the economy?
A) Aggregate supply will rise causing a boom in the economy.
B) Aggregate supply will fall and the economy will move into recession.
C) Aggregate demand will fall and the economy will move into recession.
D) Aggregate demand will rise causing a boom in the economy.
Correct Answer:
Verified
Correct Answer:
Verified
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