Multiple Choice
If there is a large increase in the price of oil,which of the following would most likely occur in the short run?
A) The aggregate demand curve shifts upward,the price level rises,and output increases.
B) The aggregate supply curve shifts downward,the price level falls,and output increases.
C) The aggregate demand curve shifts downward,the price level falls,and output falls.
D) The aggregate demand curve shifts upward,output remains unchanged,and the price level rises.
E) The aggregate supply curve shifts upward,the price level rises,and output falls.
Correct Answer:
Verified
Correct Answer:
Verified
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