Multiple Choice
Suppose OPEC announces it will be expanding the production of oil, decreasing its cost in the world market. How would this be represented in the AD/AS model?
A) The long-run aggregate supply curve would shift to the left
B) The long-run aggregate supply curve would shift to the right
C) The short-run aggregate supply curve would shift to the left.
D) The short-run aggregate supply curve would shift to the right.
Correct Answer:
Verified
Correct Answer:
Verified
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