Multiple Choice
Starting with AD₁ and AS1 in the graph below, if the world price of oil rises, then in the short run:
Graph 14-3 
A) output stays the same and prices fall
B) output decreases and prices fall
C) output decreases and prices rise
D) output increases and prices rise
E) output stays the same and prices rise
Correct Answer:
Verified
Correct Answer:
Verified
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